Sinbon Electronics Co (信邦電子), which produces cables, connectors and modems, is predicted to see revenue increase 7 percent this quarter from last quarter to reach a record high thanks to clear order visibility, Yuanta Securities Investment and Consulting Co (元大投顧) said on Friday.
With new growth momentum from the COVID-19 pandemic, the firm’s net profit this quarter is expected to rise 2 percent on a quarterly basis to also reach a record high, Yuanta said in a client note.
“Sinbon’s five major product lines are predicted to report higher revenue in the third quarter, especially the medical and electric bicycle product lines,” Yuanta analyst Wang Deng-cheng (王登城) said in a note. “Revenue from this month to September is expected to reach new highs month by month.”
Photo: Chen Jou-chen, Taipei Times
Due to the company’s high order visibility and new demand from the pandemic, its revenue this year is estimated to grow 15 percent from last year and reach a new high, Wang said.
With gross margin likely to hold at a sound level, the estimated net profit for the year is expected to increase 21 percent annually and hit a new high, he said.
The analyst’s forecast came after Sinbon on Friday reported stronger-than-expected financial results for the second quarter.
Consolidated sales rose 18 percent quarter-on-quarter and 9.5 percent year-on-year to NT$5.29 billion (US$178.98 million) for the second quarter — Sinbon’s highest in a second quarter, the company reported on Friday.
Gross margin increased to 26.3 percent in the second quarter, while operating margin advanced to 12.7 percent, the company said in a statement.
As a result, net profit for the second quarter increased 31 percent quarterly and 15.2 percent annually to NT$587.13 million, with earnings per share of NT$2.52, the company said.
“The second-quarter earnings per share of NT$2.52 is better than our expectation, mainly because of improvement of 0.6 percentage points in gross margin from the previous quarter and the contribution of NT$120 million in nonoperating gains,” Wang said.
In the first half of this year, cumulative revenue rose 10.5 percent year-on-year to NT$9.77 billion, while gross margin increased 0.3 percentage points from a year earlier to 26 percent and operating margin advanced 1.1 percentage points to 12.6 percent, Sinbon’s data showed.
Net profit grew 18.4 percent year-on-year to NT$1.04 billion, with earnings per share of NT$4.45 in the first half, the company said.
Sinbon attributed the better-than-expected results to higher revenue and rising gross margin, coupled with nonoperating investment gains, design service revenue and better control of operating expenses.
Shares in Sinbon fell 3.18 percent to NT$167.5 in Taipei trading on Friday. They have risen 35.08 percent so far this year, Taiwan Stock Exchange data showed.
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