BizLink Holding Inc’s (貿聯控股) second-quarter profit surged from a year earlier and the previous quarter as sales hit a record high driven by demand for factory automation, capital equipment, high-performance computing and electric vehicles, the interconnect solutions provider said in a statement on Friday.
Net income last quarter grew 112.72 percent year-on-year and 109.58 percent quarter-on-quarter to NT$1.17 billion (US$38.72 million), or earnings per share (EPS) of NT$7.68, BizLink said.
Consolidated revenue in the April-to-June period rose 99.02 percent annually and 19.68 percent quarterly to NT$13.96 billion, while gross margin and operating margin rose to 25.97 percent and 11.7 percent respectively, it said.
Photo courtesy of BizLink Holding Inc
“The COVID-19 lockdown in China affected our site in Kunshan, which was down for about three weeks in April, and impacted sales in the information technology, data communications and automotive segments, but we ramped up production in May and June to compensate for this situation,” BizLink chief executive officer Felix Teng (鄧劍華) said in a conference call.
“The market has presented even more challenges in the past few months, from inflationary and recessionary fears to rising energy prices. However, BizLink’s ability to address customer needs quickly was key to our performance in the second quarter,” Teng said.
If a steep drop in copper prices beginning in June continues, it would affect BizLink’s electrical appliance business and its new German business unit INBG in the second half of this year, he said.
BizLink completed the acquisition of industrial solutions unit INBG from Leoni AG in January, he said, adding that the unit cannot meet all customer demand due to limited capacity and persistent supply chain issues.
Silicon Valley-headquartered BizLink, the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s electric vehicles, said sales generated by its industrial applications segment accounted for 38 percent of total sales last quarter, followed by the information technology and data communications business’ 26 percent, the automotive segment’s 21 percent and the electrical appliances segment’s 14 percent, while 1 percent came from other segmants, including telecom equipment and medical devices.
The industrial applications segment continued to see rising orders from the company’s four major capital equipment customers last quarter, Teng said, adding that it had not seen order cuts or postponements in the past quarter.
The information technology and data communications segment’s contribution to overall sales grew last quarter on the back of continued orders for high-performance computing components, which might surpass the contribution of docking stations toward the end of this year, the firm added.
Teng said electric vehicle orders fell sequentially last quarter due to the lockdowns in China in April.
However, the situation has fully recovered since then, and the company continued to ramp up production at its US and Mexican sites, he said.
As for the electrical appliances business, customer forecasts had been adjusted downward given the ongoing Russia-Ukraine war, Teng said, adding that new projects remain in the pipeline albeit developing at a slower pace than before.
In the first half of the year, net income was NT$1.73 billion, up 101 percent from a year earlier, or EPS of NT$11.46, while revenue rose 94.9 percent to NT$25.63 billion, BizLink said.
“As we look into the second half of the year, we are watchful of constant changes in the macroenvironment and are taking action to reduce their impacts, but realize that some are beyond our control,” Teng said.
BizLink would invest strategically to grow its business scale and gradually shift its focus to higher-margin, more value-added projects, he said, adding that it is planning to be more selective in terms of customers.
SELL-OFF: Investors expect tariff-driven volatility as the local boarse reopens today, while analysts say government support and solid fundamentals would steady sentiment Local investors are bracing for a sharp market downturn today as the nation’s financial markets resume trading following a two-day closure for national holidays before the weekend, with sentiment rattled by US President Donald Trump’s sweeping tariff announcement. Trump’s unveiling of new “reciprocal tariffs” on Wednesday triggered a sell-off in global markets, with the FTSE Taiwan Index Futures — a benchmark for Taiwanese equities traded in Singapore — tumbling 9.2 percent over the past two sessions. Meanwhile, the American depositary receipts (ADRs) of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock on the TAIEX, plunged 13.8 percent in
A wave of stop-loss selling and panic selling hit Taiwan's stock market at its opening today, with the weighted index plunging 2,086 points — a drop of more than 9.7 percent — marking the largest intraday point and percentage loss on record. The index bottomed out at 19,212.02, while futures were locked limit-down, with more than 1,000 stocks hitting their daily drop limit. Three heavyweight stocks — Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Hon Hai Precision Industry Co (Foxconn, 鴻海精密) and MediaTek (聯發科) — hit their limit-down prices as soon as the market opened, falling to NT$848 (US$25.54), NT$138.5 and NT$1,295 respectively. TSMC's
TARIFFS: The global ‘panic atmosphere remains strong,’ and foreign investors have continued to sell their holdings since the start of the year, the Ministry of Finance said The government yesterday authorized the activation of its NT$500 billion (US$15.15 billion) National Stabilization Fund (NSF) to prop up the local stock market after two days of sharp falls in reaction to US President Donald Trump’s new import tariffs. The Ministry of Finance said in a statement after the market close that the steering committee of the fund had been given the go-ahead to intervene in the market to bolster Taiwanese shares in a time of crisis. The fund has been authorized to use its assets “to carry out market stabilization tasks as appropriate to maintain the stability of Taiwan’s
In a small town in Paraguay, a showdown is brewing between traditional producers of yerba mate, a bitter herbal tea popular across South America, and miners of a shinier treasure: gold. A rush for the precious metal is pitting mate growers and indigenous groups against the expanding operations of small-scale miners who, until recently, were their neighbors, not nemeses. “They [the miners] have destroyed everything... The canals, springs, swamps,” said Vidal Britez, president of the Yerba Mate Producers’ Association of the town of Paso Yobai, about 210km east of capital Asuncion. “You can see the pollution from the dead fish.
RSS