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Connector maker Cheng Uei's Q3 profits grow 10 times over Q2.

Taipei, Nov.2, 2012 (CENS)--Taiwan's connector makers witnessed remarkable growths in the third quarter, with Lotes Co. Ltd. hitting the highest EPS (earnings per share) of NT$3.67 (US$0.12), reaching NT$8.52 (US$0.284) in the first three quarters and likely to challenge NT$10 (US$0.33) in the year. Cheng Uei Precision Industry Co., another major producer, saw net profits in the third quarter up 10 times to NT$556 million (US$18.53 million), the highest growth in the industry, with NT$1.14 (US$0.038) in EPS.

Lotes saw consolidated revenues in the third quarter grow more than 10% quarter on quarter (QoQ) to NT$2.379 billion (US$79.3 million), the highest in history, with net profits up 19% QoQ to NT$341 million (US$11.37 million), better than expectation. The firm's gross profit margin in the quarter reached 31.7%, with NT$795 million (US$26.5 million) in net profits and NT$8.52 (US$0.284) in EPS, challenging NT$10 (US$0.33) in annual EPS.

As Apple Inc. has widely adopted new connectors in its products, Cheng Uei is expected to improve its performance further in the fourth quarter.

Driven by mounting shipments for Apple, Longwell Company saw net profits in the third quarter surge 170% QoQ to NT$920 million (US$30.67 million), with gross profit margin up 2% QoQ to 13.3%, NT$208 million (US$6.93 million) in net profits in the first three quarters and NT$1.67 (US$0.057) in EPS. The firm is expected to see operations in the fourth quarter peak this year.

Benefiting from adjustment of product mix and rising capacity utilization, another connector maker Syncmold Enterprise Group raised its gross profit margin to 24.3% in the third quarter, with net profits up 63% from a year earlier to NT$208 million (US$6.93 million), a historical high; coupled with NT$1.52 (US$0.051) in EPS, higher than expected.

Syncmold's EPS in the first three quarters exceeded the NT$3.71 (US$0.124) in 2011 to NT$4.25 (US$0.14). As for 2013, the firm has nearly settled orders in the year with an addition of a major Japanese customer, along with expansion into network communication products, which will help the firm to challenge NT$10 billion (US$333.33 million) in revenues and continually improve profits.

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Title Annotation:Cheng Uei Precision Industry Co.
Author:Wang, Andrew
Publication:The Taiwan Economic News
Article Type:Financial report
Geographic Code:9TAIW
Date:Nov 2, 2012
Words:414
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