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Wah Lee Industrial Corp. (3010.TT) announced January 2021 unaudited consolidated sales of NT$5,845M, a growth of 36.8% YoY and a growth of 11.0% MoM. This monthly sales set the record high single monthly sales again.
With the strong demands from 5G, HPC, and Automobile IC, Taiwan semiconductor industry had a prosperous year last year. Our major semi customer’s capacities were at full utilizations both on legacy and advanced nodes. As the “aircraft carrier of materials”, Wah Lee has always been participating in the provision of full range of semi materials, including photoresist, PR stripper, specialty gases, CMP slurry, and spare parts. PCB materials benefit from the high end servers demands and the expansion plans of IC substrate factories. 5G high frequency substrate, DI process high resolution dry film, and materials for 5G antenna have all driven the sales in the PCB sector. For the high end engineering plastics, Wah Lee has penetrated into the provision of high frequency connectors, optical lenses for camera modules, and auto electric parts. Optoelectronic division has stable sales in FPD materials and driver ICs and has successfully stepped into the next generation electronics in the overseas markets.
Taiwan has been leading in the world ICT industry. The EMS leader Hon Hai recently set up MIH EV platform and attracted hundreds of companies to join in. Taiwan is on the road to transform itself from EMS to CMS (Car Manufacturing Service). The future of EV is promising with a CAGR of 29% for the next ten years and EV sales will increase from the current 2.5 million units to 11 million units in 2025.
Auto market has become the most potential industry for engineering plastics. Plastics have started to provide to the usage of interior design and are increasing their usage in the exterior spare parts. The obvious advantage of plastics is the lighter weight. Under the stricter environmental rules, car manufacturers adopt more plastics to replace metals. Wah Lee’s high end engineering plastics have been catering to traditional auto parts and have entered into the EV connector applications.
Wah Lee’s high temperature tolerant nylon from its Japanese supplier has long been the dominant material for electronic connectors for its low water absorption, high rigidity, stable shaping, and not easy to generate bubbles in the SMT process. The work-from-home and on-line learning business opportunities have created significant demands for PC, NB, Servers, and 5G smartphones. The high temperature tolerant nylon has strong order flows from the market.
The engineering plastics have reached out the applications to EV connectors and car camera modules. Take car connectors for example, the connectors need to be strongly rigid under the high vibration condition of car running. High temperature tolerant PA nylon with low water absorption and high rigidity has become the first choice of EV car industry. Whether it’s used in the connectors for ECU, GPS, speedometer, and camera modules, the PA nylon has now been widely accepted by the auto industry. Wah Lee’s high temperature tolerant nylon has shown very high double digit sales growth in January 2021 and will continue its expansion in the EV field in the future.