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May 9, 2017 Wah Lee Industrial Corp. (3010.TT) announced its April 2017 unaudited consolidated sales of NT$3,094M. Cumulative 2017 Jan.-Apr. consolidated sales was NT$12,282M and grew by 1.00%, compared to the same period last year.
Geographic expansion has been one of the growth strategies for distributors. Wah Lee has been cultivating in southern and eastern China for years. The sales contributed from China market takes weight of 43% out of the total condsolidated Jan.-Apr. 2017 cumulative sales. In recent years, before the Taiwanese government promotes the business sectors to advance into southern Asia, Wah Lee had expanded into ASEAN countries. The company set up its subsidiary in Singapore in 2006 to focus on semiconductor business and has been providing semi products to major semiconductor companies locally. The Singapore subsidiary’s sales has been growing every year and 2016 sales had reached NT$ 1.24 billion. The Jan.-Apr. cumulative sales 2017 from the Singapore subsidiary has grown by 13.2% as compared to last year.
In 2011, the company expanded into Vietnam. After 6 years of hard work, we have successfully penetrated into automobile, LED, network devices, and consumer goods industries. Vietnam’s April 2017 sales grew by 66.2% as compared to the same period last year. In 2016, the company further reached out to Indonesia, the largest domestic demand market among ASEAN countries. In the initial stage, the company expanded its high-end engineering plastics into automobile parts, electrical goods, and cosmetics. The cumulative Jan.-Apr. sales in 2017 has grown more than 5 times than the same period in 2016. The Vietnam and Indonesia operations not only both set records in sales revenues but also have turned profitable. It’s expected that Wah Lee will increase its sales momentum by the help of these expansions in southeast Asia which enjoys the most demographic dividend.
Established in 1968, Wah Lee not only sells its products in semiconductor, Computer/communication, and PCB industries but has also cultivated in flat panel display and green energy sectors for a long time. C/C and semi accounted for about 73% of consolidated sales, benefited from various types of smartphones that will be launched in the 2nd half of the year and have some revolutionary features. The industries expect that the biggest wave of smartphone purchase will be triggered. Therefore, C/C accumulative sales grew by 10.3% and semi grew by a significant 15.8%. In order to maintain sustainable growth, Wah Lee is more aggressive in tapping into new industries; including food packaging, medical devices and consumables, automobile parts and other consumer and auto industries. The company is investing resources in exploring new products and customers in these industries and expects to see their growing significance in sales contribution in the near future.
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Sectors |
Jan.-Apr. 2017 Sales % |
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Computer/Communication(high-end engineering plastics & PCB) |
46.7% |
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Semiconductor |
26.1% |
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FPD (TFT LCD, touch panel) |
14.4% |
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Green Energy (solar, LED, rechargeable battery) |
8.5% |
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Others |
4.3% |