Tesla’s and Sumeeko’s Stock Prices Hike Up

The 1st quarter of a year is usually an off season for Sumeeko, so its revenue in the 1st quarter of 2015 was NTD0.311 billion (a 6.5% decline from the previous quarter, but a 5.7% growth on a year-on-year basis). The 2nd quarter for Sumeeko was a high season when it started to ship products to GM. A market survey estimated that its quarterly revenue would grow 10-15% and would show recovering gross profit and increase the total profit.

Most market analysts think that 2015 will be a prosperous year for Tesla. With the surge in Tesla’s stock price, Sumeeko’s stock price also showed a 4.8% growth. Sumeeko is a fastener supplier of Tesla. In 2014, only 4% of Sumeeko’s revenue was contributed by Tesla. However, with the sales growth of Tesla, the number of product categories Sumeeko provides to Tesla will increase to 75 and Tesla will represent 7-8% of Sumeeko’s revenue.

In addition to Tesla, Sumeeko’s largest customer, GM, will also need the new chassis parts from Sumeeko after the end of Q2 2015 and GM’s factory in Egypt will also need Sumeeko’s products after 2015. It is estimated that GM’s total revenue in 2015 will grow 30%. On the other hand, Sumeeko has also sent a batch of parts especially designed for Audi’s roof racks for lab testing and expects to put this product into mass production at the year end of 2015, which may contribute USD2 million to the total revenue of Sumeeko in 2016.