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Hiwin's Nov. Revenue Hits 3-Year High

2014/12/12 | By Ken Liu

Hinwin Technologies Corp., Taiwan's biggest manufacturer of crucial components for precision machines, announced consolidated revenue of NT$1.5 billion (US$50 million) in November, up 0.7% from a month earlier and 12.67% year on year to hit a 3-year high, to which industry executives attribute mostly to the company's increased shipment of linear guide ways and industrial robots.

The November revenue helped push the company's consolidated revenue for the first 11 months to NT$13.7 billion (US$459.3 million), up 23% from NT$11.2 billion (US$373.4 million) YoY. Industry executives project the company's Q4 revenue to rise around 5% from the previous quarter and approximately 10% YoY.

In the first 11 months this year, the company made NT$6.21 per share in after-tax net income, topping all  its local peers. Industry executives project the company's EPS at over NT$9 in 2014.

Company chairman and chief executive officer (CEO), Eric Chuo, said the company's Q4 revenue will exceed Q3's, with that in Q1, 2015 to also rise YoY due to vigorous demand for intelligent automation.

The company's shipment of industrial and medical robots will considerably increase in 2015 due mostly to being CE certified in Europe, coupled with being certified for industrial robots in China.

With its order books filled for robots, the company ships at least 100 industrial robots monthly to  account for around 8% of its total revenue, which will likely rise to at least 10% in 2015.

In anticipation of China's rising  demand for industrial robots due to the nation's emphasis to develop industrial robotic usage in the 13th Five Year Plan, the company has rented a factory in Suzhou of the eastern Chinese province of Jiangsu to cope with such market.

Vigorously boosting production capacity in Taiwan and China, it has acquired land in the Suzhou Industrial Park to start building a factory in June 2015 for automated systems; while it will begin construction of factories at the Taichung City Precision Machinery Innovation Technology Park in central Taiwan and the Jiayi Dapumei Intelligent Industrial Park in southern Taiwan in Q2, 2015, all of which to cost  estimated NT$10 billion (US$333.3 million). (KL)

Hiwin's Performance (2013-2014)

Year

2014

2013

Consolidated revenue

NT$10.79bn

NT$8.56bn

Pretax net income

NT$2.04bn

NT$1.58bn

After-tax net income

NT$1.51bn

NT$1.19bn

EPS

NT$6.21

NT$5.01

Source: Market Observation Post System, Taiwan Stock Exchange.