Chenming Electronic Tech. Corp.




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Chenming revenue   annual increment will be at least 30%



Chenming (3013) actively involves the handheld and wearable device business. Chairman James Lin (right), and general manager Hu Baosheng (left) are optimistic about this year's revenue growth rate to be at least 30%. Legal experts expect this year EPS is expected to exceed NT$1, nearly 12 years high.

Chenming (3013) hosted a shareholders meeting in this morning. The general manager Hu Baosheng said that the revenue ratio from Metal Injection Molding (MIM) this year will rise to 30%. With cut in the wearable device supply chain, we are optimistic about the operation. The annual increase will be at least maintain at the ratio of 30% to 40%, same as that of the previous 5 months.

Central News Agency reported on the 13th, Chenming main products include personal computer chassis, barebone servers, mobile phone components, and etc. In response to the rise of smart phones and tablets, Chenming is actively cultivate MIM, as well as NMT process – the formation combined with metal and plastic, for mobile phone component orders to enhance the proportion of high gross margin product revenues.

With the trend of lighting the mobile phone, tablet and other electronic products, Chenming successfully cut in the Apple supply chain. Becomes the supplier for iPhone, iPad charging connector and internal components.

。Last year, Chenming adjusted the product portfolio, consolidated revenue NT$ 2.302 billion, down 18%. But benefited from the high-margin MIM business growth, after-tax surplus of NT$95.65 million, an annual increase of 151%, or NT$0.53 per share after tax. Due to make up for the loss and write off the Treasury shares, it allocated 10% of the statutory surplus reserve and turn it into the special surplus reserve. The available surplus became NT$58.15 million, the shareholder’s meeting decided not to allocate dividends.

Looking forward to this year,
Hu Baosheng said, MIM last year accounted for more than 20% revenue. In the second half of the year, with the US customer smart phone new product shipments, annual revenue share is expected to increase to 30%. Plus cut into the wearable device supply chain, high volume shipping will be from July to January next year. The revenue ratio between the first and second half of the year is expected to be 40% to 60%, If the new product from the US customer sales better than expected, the revenue ratio is expected to reach 30% to 70%.

In addition to the handheld device products, Chenming is actively looking for the new opportunities in the medical and automotive industry. Chairman James Lin pointed out that the automotive industry life cycle is long which is still in the initial stage. The majority of the medical products are probes, medical needles and other disposable products, which has stated production in small scale.

In addition, Hu Baosheng pointed out that MIM can also be applied in the leather buckle and jewelry fastener, is now in contact with the boutique industry.

Hu Baosheng said that this year they are focused on the wearable device business opportunities, with the old customer orders increased and new customers to join, it is expected in the MIM capacity utilization will be raised from the current 50% to full load by the second half of the year.

Optimistic about the demands of MIN continued to grow, James said that the recent purchase of a sintering furnace is scheduled to be ready by the end of the year. In January next year, the official production will start with the total capacity can be almost doubled.

As for the server business, Chenming customers including Quanta (2382), Wistron (3231), Fujitsu,
Tyan, and etc. The current share of revenue accounted for more than 70%, this year the server business is expected to grow over the last year, which provides the momentum for the operation.


The combined revenue of Chenming in the first 5 months is NT$1.218 billion. The annual growth rate is 36.19%. The first quarter EPS is NT$0.18. Hu Baosheng said the second quarter results is expected to be flatting with the first quarter. In the third quarter, with the customer new product shipments, the revenue will rise significantly

Legal person believes that with Apple's new product shipments, the EPS of Chenming this year is expected to exceed NT$1.01 in 2010. Which will become a new high in recent years

王鵬捷/ Organized