Taiwan's Top-3 Footwear Makers See Revenues Grow in Oct.

Taiwan's leading contract manufacturers of footwear, Pou Chen Corporation, Feng Tay Enterprises Co., Ltd. and Fulgent Sun Group, all enjoyed revenue growths in October, and generally see positive outlook for Q4, 2014.

Now the world's largest contract maker of footwear by shipment, Pou Chen reported consolidated revenue of NT$20.105 billion (US$670.16 million) for October, up 3.9% from NT$19.533 billion (US$651.1 million) last October, mostly due to strong performance by its 49.98%-held subsidiary, Yue Yuen Industrial (Holdings) Ltd., which scored US$657 million in the month to add to its Jan.-Oct. revenue of US$6.593 billion, up 6% year-on-year (YoY).

Also contributing to Pou Chen's solid revenue growth was Pou Sheng International (Holdings) Ltd., spun off from Yue Yuen's marketing and distribution operations. Pou Sheng, listed in  Hong Kong, posted revenue of US$187 million in October, up 7.2% YoY, and cumulative revenue of US$1.647 billion for the first 10 months of this year, growing 11% YoY.

Driven by contributions from  subsidiaries, Pou Chen witnessed  Jan.-Oct. revenue reach NT$199.721 billion (US$6.65 billion), up 7.4% from  NT$186.018 billion (US$6.20 billion) the year before.

Meanwhile, Feng Tay posted consolidated revenue of NT$3.761 billion (US$125.37 million) in October to enjoy the strongest yearly growth of 20.7%, compared to the other two Taiwanese counterparts. For the past 10 months, the firm's aggregate revenue totaled NT$38.295 billion (US$1.27 billion) for a 20.7% increase.

With customers as Nike continuously seeing banner sales worldwide, Feng Tay therefore optimistically forecasts shoes shipments and sales at 21.64 million and 20.42 million pairs, respectively, in Q4, up 15% and 13% YoY.

Fulgent Sun reported consolidated revenue of NT$543 million (US$18.1 million) for October, up 4% YoY, and cumulative revenue of NT$6.846 billion (US$228.2 million) for the first 10 months of this year, soaring 18.4%.

The company is experiencing a rosy year with cumulative EPS (earnings per share) for the past three quarters reaching NT$2.41 to cap last year's NT$2.24. As for outlook in Q4, it looks to gaining stronger growth momentum, primarily because of seasonal booms. (SC)

Taiwan's Top-3 Footwear Contract Makers' Revenues (Oct. & Jan.-Oct. 2014)
Company	Oct. Revenue	YoY Growth Rate	Jan.-Oct. Revenue	YoY Growth Rate
Pou Chen Corporation	NT$20.105 billion	3.9%	NT$199.721 billion	7.4%
Feng Tay Enterprises Co., Ltd.	NT$3.761 billion	20.7%	NT$39.295 billion	20.7%
Fulgent Sun Group	NT$543 million	4%	NT$6.846 billion	18.4%

Source: Market Observation Post System