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Sumeeko Sees Promising Prospect for New Orders & Global Footprints with New Plant under Planning
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2014-10-23
Benefited from the recovering global car market, public auto component and fastener maker Sumeeko receives another round of new orders for October 2014. It is expected to perform well in Q4 revenue and profit. In 2015, its plant in Pingtung Export Processing Zone will contribute to the current capacity which will increase from 1,000-1,100 tons per month to 2,000-2,200 tons per month. Its revenue and profit for 2015 is expected to hit a new record again.
Sumeeko manufactures various types of fasteners, 75% of which are applied to automotive components, and 10% of which are applied to machines such as agricultural machines. It is of the few Tier1 component suppliers in Taiwan that directly supply to car makers such as GM, Chrysler, Toyota, and the world-renowned electric car maker Tesla. Q3 revenue at NTD 318 million, down 3.93% from the last quarter. Growth rate is slightly lower than estimated but still reaches 12.77%. According to Sumeeko, order intake in the fourth quarter is visible for 5 months, and business prospect is optimistic. Car body structures ordered by GM will be shipped starting the end of October, and will help improve the business in Q4.
In addition, looking forward to the car market development in China, Sumeeko evaluating on an acquisition of a China-based fastener plant. If everything works out, Sumeeko's production base may extend to China and gain its enormous car orders in a short distance.
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