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Chenming (3013), chairman Mr. James Lin in the Annual shareholder’s meeting, said the company is actively transforming. Now, it is focused on the cloud server, mobile device, and mobile phone business. The transformation has been successful. The future will take place in the medical products and auto parts business development. Although the medical knife and medical needle development technology is very difficult, it has a small amount of shipments. In the second half of the year, with iPhone 6 and iWatch will be shipped, legal person estimated the annual operation will increase by 30%. The profit also will be the best in past 3 years.
Cross – the wearable device supply chain
Chenming last year earning NT$0.53 per share, James Lin is expecting this year the server and computer chassis growth rate is higher than the industry average. In addition, Chenming plans to continue invest in new technology. Also proposed to develop the Server processor fixture to meet the Facebook OCP open computing architecture. 70% to 80% of Chenming’ s revenue are comes from cloud server chassis orders. Customers are including Quanta (2382), Mitac (3706), Wistron (3231), and etc., indirect shipments to the Facebook and other customers.
Chenming general manager Hu Baosheng took office in the last year. This year is the first time for him to preside over the shareholders meeting. He said Metal Injection molding (MIM) accounted for about 20% of the total revenue in last year. This year is expected to reach 30%. In the first half of the year, the ratio is still low. However, in the second half of the year, new mobile phone devices from US customer will begin to ship. Also due to the company take place in the wearable device supply chain, the shipments ratio will be doubled. All the way from July to January next year. The revenue ratio between the first and the second half of this year is expected to be 40% to 60% or even 30% to 70%.
Chenming is one of the iPhone 5 component suppliers. The industry believes iPhone 6 and iWatch will cut the market in the second half of the year. The wearable devices orders from Apple and other US customers started to ship from last year. Hu Baosheng did not want to disclose the customer names. He only said that the company is working very hard on the products for the wearable devices.
Chenming MIM process also gets into the supply chain of boutique bag branding accessories. There are two branding companies, such as LV boutique bag accessories started shipping. The current utilization rate is only reach 50% of the MIM production capacity. Hu Baosheng said that the capacity will be fully utilization in the second half of the year. So by the end of the year, they will induce a new continuous furnace, which will increase the production capacity by 80%.
王郁倫/ Taipei reported