Chenming Electronic Tech. Corp.




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Chenming operations improved in last year, however Q1 is seasonal off-season



The operations of Chenming (3013) significantly improved in the second half of last year. However, with the arrival of seasonal off-season, the legal person believes that the operation of Chenming in Q1 will be weakened than in Q4 last year. The main kinetic energy of Chenming is still depends on the server and mobile devices markets, the peak season is expected to start in the second half of the year.


Chenming is specialized in the mechanical component R & D, and manufacturing. Servers and PC chassis contribute 50% to 60% of the revenue. The parts for smart phones, tablet PCs, and wearing devices contribute about 30%. Their core technology are MIM (Metal Injection Molding), NMT (Nanofabrication Manufacturing Technology), the rest of the revenue is from Tooling.


In the second half of last year, it is the high season of server and mobile devices. The combined revenue of Chenming jumped to more than NT$400 million in August last year. From September to November, the combined revenue remained stable in the high level. In the first 11 months of last year, the combined revenue is NT$3.845 billion, an increase of 32.79% from the previous year.


The legal person pointed out that the significantly strengthened business operation of Chenming is mainly due to the increase of demand for data center servers, and it has become one of supplier of the mainland major server manufacturers. The momentum of its business is still depended on the demand of the server and mobile devices.

In response to seasonal off-season shipping, legal person believes that the Q1 revenue of Chenming will be lower, the profit margins will also be impacted. With the data center server demand picked up in Q2, its business operations will gradually return stable.


In 2006, the combined revenue of Chenming in the first 3 quarters is NT$3.005 billion, an annual increase of 26.8%; EPS of NT$0.52. Legal person estimates the EPS of Chenming in the last year can be up to NT$1.

Money DJ  Reporter鄭盈芷/ report