Wah Lee Industrial Corp. (3010.TT) announced June 2021 unaudited consolidated sales of NT$5,840M, a growth of 15.6% YoY, setting the record high for June sales. 2Q21 sales reached NT$16,866M, grew by13.7% YoY. Cumulative 1H 2021 consolidated sales reached NT$33,149M, a growth of 21.9% YoY. 2Q21 and 1H21 sales both set record high.
TPCA reports showed that under the leadership of 5G, AI, AIoT, and big data, the demand for high speed computational chips will be strong and so is the demand for IC substrates. Taiwan’s three major IC substrate makers are expanding their capacities. Their customers have already booked the expanded capacities. Wah Lee teamed up with the supplier to launch the stepper and DI-grade high resolution dry films for IC substrate manufacturing processes and have secured the orders from the new fabs. The market consensus is that the IC substrate market will be under supply till year 2023, especially with the expanding demands from AIoT and V2X (Vehicle-to-everything). Wah Lee’s dry film sales is optimistically expected.
WFH and on-line education have stimulated the demands for NBs and table PCs. The market still expects the pull-ins of 3C products to remain at high level going into 3Q of this year. Wah Lee’s thermoset plastics are of high rigidity, high reliance, and insulation and are the top choice for power supply devices. The thermoset plastics have long been used for NBs and educational tablets. Now they have penetrated into the power supply of game consoles, smart speakers, and fast chargers. The growth rate of thermoset plastics has been over 50% YoY for the first half of this year.
After the success of 3C product power supply, the thermoset plastics further expanded into medical and industrial automation fields. Wah Lee actively promoted the thermoset plastics into the areas of automobile electric appliances, including brake sensors, brake calipers, and pumps. Furthermore, the plastics can be used in charging poles and electric appliances for EVs.
Wah Lee also distributes high temperature enduring nylon from its Japanese partner. The material has low humidity absorbance rate, high rigidity, and size stability and has been widely applied in consumer electronics connectors. Under the zero contact business opportunities, PCs, NBs, and servers have been growing substantially and driving the demands for high temperature enduring nylon. The related sales growth for the first 6 months this year was close to 40%.
In order to help the next generation PC and servers to have better performance and low power consumption, DDR5 DRAM is expected to accomplish the mission. The production of DDR5 needs SMT process which requires high temperature enduring nylon for the high temperature manufacturing processes. It’s the first year of DDR5 application this year. The related demands will drive the strong sales of high temperature enduring nylon. Additionally, the connectors for automobile electric appliances also require nylon as the base material. The booming global sales of automobiles will further drive the nylon sales and will broaden the market share of nylon in the automobile industry.