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Wah Lee Industrial Corp. (3010.TT) announced January 2020 unaudited consolidated sales of NT$4,272M, a decline of 3.9% from last year. There were less working days in January due to Chinese New Year holidays. In addition, the COVID-19 during the Chinese New Year delayed the start of work after New Year and has impacted the economic activities.
The trading disputes between US and China has dragged on for years and pushed many multinational manufacturers to diversify outside of China. The COVID-19 even speeded up the supply chain of famous brand name companies to move to other countries. Taiwanese manufacturers have moved their production bases back to Taiwan or to South East Asia countries.
Indonesian government highly focuses on their development of electronic industry and could become the pivot of Taiwanese electronic industry. The biggest component supplier of an American smartphone maker has set up its operations in Indonesia to produce wireless communication devices and components for smartphones. Wah Lee’s high end engineering plastics will continue to expand its business scale in Indonesia after Taiwanese manufacturers moved in.
Wah Lee group in Indonesia has attained initial success in automotive spare parts, smart meters, and electronic appliances. Because of the population bonus of Indonesia as the country has the fourth largest population in the world, the demands for cosmetics and food packaging are growing substantially. Wah Lee Indonesia has well positioned itself in the country and will perform quarter by quarter in the future. It also cooperates with a major Taiwanese power supply player to work on factory energy saving system and green industry. These will also contributes to the sales in the future.