Cheng Uei Lands Samsung's Order for Cellphone Connectors

Taipei, Feb. 29, 2008 (CENS)--Cheng Uei Precision Industry Co., a Taiwanese maker of connectors and Bluetooth modules, has landed orders from the world's second-largest mobile phone brand Samsung for connectors, which are expected to add fuel to the company's sales performance this year, according to company sources.

In addition to China's Huawei Technologies Co., Ltd. and China Mobile Ltd., Cheng Uei has successfully attracted a European telecom company to place orders with it for low-end mobile phones on an ODM (original design manufacturing) basis. Thus, the company will probably see its business operation of making mobile phones sharply grow this year.

Cheng Uei has specialized in production of connectors, and used to witness sales of the products account for up to one third of the total last year. After grasping orders from Nokia, the largest brand of handsets in the world, for Bluetooth earphones, the company has further joined Samsung's supply chain of mobile phones for the first time.

As a result, Cheng Uei's management noted, Cheng Uei has successfully added the world's top five mobile phone brands, namely Nokia, Samsung, Motorola, Sony Ericsson and LG in its client lists at present.

In fact, Cheng Uei has had nearly all its connectors certificated by Motorola and Sony Ericsson and become the major connector supplier for the two brands. As to Cheng Uei's newly added client Nokia, the brand presently adopts only two connectors in assembling a mobile phone, which usually requires nine different ones to be assembled. This means there is still large room for Cheng Uei to vie for more orders from Nokia.

Aside from connectors, Cheng Uei has also enjoyed explosively increasing sales of peripheral components for mobile phones and GPS (global positioning system) devices this year.

Institutional investors project that Cheng Uei, after recording new highs in its third- and fourth-quarter profits last year, would post annual sales revenue of NT$42.825 billion, an 8% rate of return on net incomes and pretax profits of NT$3.4 billion, or NT$8.5 per share, for entire the year.