Connector makers boast lucrative business for first three quarters

Taipei, Oct. 28, 2004 (CENS)--Several connector makers listed on the Taiwan Stock Exchange scored lucrative businesses in the first three quarters.

Industry sources noted that with the advent of the peak season in the second half, local connector makers began to see their businesses pick up from the third quarter, especially those who focus on consumer electronic and cell-phone applications.

Sinbon Electronics Co., Ltd. Reported total revenue of NT$5.04 billion (US$148.58 million at US$1: NT$33.9) for the first three quarters, up 61% over a year earlier. Sinbon's first-three-quarter revenue already achieved 75.01% of the company's annual goal and outstripped 2003's full-year revenue of NT$4.5 billion (US$132.74 million). It scored earnings per share (EPS) of NT$3.87 (US$0.11) during the period, up 39.86% year-on-year.

Sinbon attributed its extraordinary performance to its success in continuously winning orders from the top-five cell-phone brands in mainland China, including Konka, Lenovo, BIRD, AMOI and Panda.

Cheng Uei Precision Industry Co., a leading supplier of consumer electronic- and cellphone-use connectors, reported revenue of NT$2.06 billion (US$60.68 million) in September, achieving a record high for the third straight month, and total revenue of NT$12.7 billion (US$374.63 million) for the first three quarters, outstripping last year's total. The company's third-quarter profits are expected to grow over 100% from the previous quarter.

Cheng Uei attributed its brisk sales to the sharp increase in shipment of game console- and MP3 player-use connectors. Cheng Uei's affiliate, Foxlink Image Technology Co., Ltd., in which Cheng Uei holds a 47% stake, also reported lucrative business results in the past months and is scheduled to go public by year-end.

Cheng Uei expects to challenge EPS of NT$6 (US$0.18) this year. The company's first-half EPS was NT$1.71 (US$0.05).

L&K Precision Technology Co., Ltd., a maker of communication-related connectors, reported pretax earnings of NT$20.3 million (US$598,820) in August, up 50% from July, and accumulated pretax earnings of NT$68.74 million (US$2.03 million) in the first eight months, translating into EPS of about NT$3 (US$0.09).

Full Rise Electronic Co., Ltd., a leading maker of connector for communication equipment, had pretax earnings of NT$200 million (US$5.9 million) for the first nine months, equivalent to EPS of NT$4.49 (US$0.13). In view of the influx of orders, the company is expected to smoothly achieve the annual profit goal of NT$267 million (US$7.88 million) this year.