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Wah Lee Industrial Corp. (3010.TT) announced March 2021 unaudited consolidated sales of NT$5,914M, a growth of 30.7% MoM and 22.0% YoY, setting the record high for monthly sales. 1Q21 consolidated sales reached NT$16,284M, a growth of 31.8% YoY, also a record high.
Wah Lee’s EPS for last year was NT$8.03, a record high. The company pays not only cash dividend but also stock dividend. It not only increases the return to shareholders but also prepares the company for its new business development. Wah Lee will focus on very promising sectors such as 5G, EV, biomedical, green, and semiconductor advanced processes. It expects to feedback investors with better returns. Wah Lee has become a value stock that features both sustainability and growth.
With the strong demands from 5G and EV, even though new capacities were added, semicon industry is still under supply. Wah Lee, as the leader in semi front-end manufacturing process raw materials, has participated in the supplies of both legacy and advanced manufacturing nodes. Its photoresist, electronic-grade chemicals, specialty gases, and CMP slurry sales have increased substantially. Looking forward to this year, with customers’ new capacities added into mass production, Wah Lee will provide its products to the baseline of latest manufacturing nodes and expand its market share.
High speed, low delay, and big data transmission are the major melodies of the 5G era. Servers with AI function are becoming as the mainstream. Wah Lee’s 5G high-frequency substrates have penetrated into the supply chains of high end servers and will keep participating in the development of new generation cloud servers. Dry film sales have grown over 20% in 1Q21 with the strong demands from IC substrate makers who use Wah Lee’s high end dry films in the manufacturing processes of their expanded capacities.
Wah Lee also provides T-con (time controller), driver, and power management ICs for LCD panels from Japanese, Korean, and Taiwanese suppliers. The major drivers of the huge demands of TV, NB, and monitor panels are from the stay-home economics under the pandemic. IC related sales have grown by double digits in 1Q 21. With limited 8-inch wafer fab capacities and the demands from automobile chips, new capacities for LCD driver ICs are still behind the way. With multiple sources of IC supplies, Wah Lee’s IC sales will grab the first hand opportunities and help push the sales growth up to another level.
Wah Lee has diversified distribution networks in the region. The company has seen rapid growth of its Singapore, Thailand, Vietnam, and Indonesia subsidiaries in the semiconductor, automobile, and electronics industries, with double digit growth in the 1st quarter. China market has undergone the trade conflicts and technology challenges. Now the government is pushing 5G and EV and other new technologies forward. Wah Lee Chinese subsidiaries have seen their sales momentum to continue to grow. The 1Q sales has grown by almost 40%.