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Wah Lee Industrial Corp. (3010.TT) announced July 2018 unaudited consolidated sales of NT$4,485M, a 26.56% growth from the same period last year. Cumulative 2018 Jan.-Jul. consolidated sales was NT$29,533M and increased by 29.27%, compared to the same period last year.
Currently, China is the largest automobile market in the world. Tier 1 auto parts suppliers have set up their manufacturing bases in China to grab the market. Wah Lee has been the total solution provider of upstream raw materials and its high-end engineering plastics have also penetrated into the auto parts business. Wah Lee’s engineering plastics have been used in both electrical parts and motors. Motors include the ones used in windshield wipers, automatic windows, engine starters, automatic adjustable seats, and ABS. The largest automobile motor market is in China.
Wah Lee has been able to sell its products to manufacturers who supply to Tier 1 auto parts makers and OEMs. Tier 1 auto parts makers include German Bosch/Mahle, French Valeo, and Japanese Denso/ASMO. Wah Lee has been doing businesses with these manufacturers for a long time. It’s relatively difficult to penetrate into the auto parts business. Its specification process is extremely challenging and will take 3 to 5 years to get through. But the business is also very stable. Once your products are spec-in and the business rights will stay for a very long term. Wah Lee’s related business has been growing at double digit rate this year and expects to see stronger growth momentum in the next half of this year, which is usually the peak season of auto industry.
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Sectors |
Jan.-Jul. 2018 Sales % |
|
ICT materials (high-end engineering plastics & PCB) |
44.9% |
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Semiconductor |
20.6% |
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FPD (TFT LCD, touch panel) |
23.7% |
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Green Energy (solar, LED, rechargeable battery) |
6.5% |
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Others |
4.3% |