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.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
‘SILVER LINING’: Although the news caused TSMC to fall on the local market, an analyst said that as tariffs are not set to go into effect until April, there is still time for negotiations US President Donald Trump on Tuesday said that he would likely impose tariffs on semiconductor, automobile and pharmaceutical imports of about 25 percent, with an announcement coming as soon as April 2 in a move that would represent a dramatic widening of the US leader’s trade war. “I probably will tell you that on April 2, but it’ll be in the neighborhood of 25 percent,” Trump told reporters at his Mar-a-Lago club when asked about his plan for auto tariffs. Asked about similar levies on pharmaceutical drugs and semiconductors, the president said that “it’ll be 25 percent and higher, and it’ll
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
WARNING SHOT: The US president has threatened to impose 25 percent tariffs on all imported vehicles, and similar or higher duties on pharmaceuticals and semiconductors US President Donald Trump on Wednesday suggested that a trade deal with China was “possible” — a key target in the US leader’s tariffs policy. The US in 2020 had already agreed to “a great trade deal with China” and a new deal was “possible,” Trump said. Trump said he expected Chinese President Xi Jinping (習近平) to visit the US, without giving a timeline for his trip. Trump also said that he was talking to China about TikTok, as the US seeks to broker a sale of the popular app owned by Chinese firm ByteDance Ltd (字節跳動). Trump last week said that he had
RSS