Taiwan's Three Major Footwear Makers Report Promising H1 Results

Driven by better global business climate, Taiwan's three leading footwear manufacturers, namely Pou Chen Corp., Feng Tay Enterprise Co., and Fulgent Sun International Holding Co., all reported promising results for the first half (H1) of the year and expect rosy performance in H2.

In June alone Pou Chen posted combined revenues of NT$21.534 billion (US$717.8 million), down 2.3% from a month earlier, yet up 8.2% from a year earlier. In H1 its revenues totaled NT$119.898 billion (US$3.997 billion), up 8.3% YoY compared to last year's NT$110.67 billion (US$3.69 billion).

Pou Chen attributes the rise in revenues to good  performance of its subsidiary—Yue Yen International Ltd., which scored revenues of US$719 million or about NT$21.432 billion in June for an annual growth of 9.3%, with the H1 revenues rising to US$3.954 billion, up 6.8% from last year's US$3.7 billion in the same period.

Boosted by production increase in the plants in Vietnam and India, Feng Tay saw revenues surge 17% YoY to a monthly record high of NT$4.091 billion (US$136.37 million) in June. Likewise, its Q2 revenues hit a record quarterly high of NT$11.944 billion (US$398.133 million), resulting in revenues surging 20.1% YoY to NT$22.187 billion (US$739.57 million) in H1.

Moreover, the company is projected to turn out 20.1 million pairs of shoes in Q3 for a quarterly growth of 6% or annual rise of 14%, with Q3 sales volume to possibly reach 18.81 million pairs for a quarterly drop of 10% or an annual rise of 11%.

In June Fulgent Sun posted a considerable monthly growth of 34.8% or annual rise of 36.8% of NT$867 million (US$28.9 million) in revenues for the highest monthly record ever, with Q2 revenues also hitting a quarterly record high of NT$2.267 billion (US$75.57 million). As result, its H1 revenues surged 28.6% YoY  to NT$4.287 billion (US$142.9 million).

Fulgent Sun produces mainly sports footwear and outdoor functional shoes, with major clients including Nike, Decathlon and Columbia. To meet growing demand, the company has been expanding operations, with its fifth plant in Cambodia having started up in Q2. (JL)