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Wah Lee Industrial Corp. (3010.TT) announced March 2019 unaudited consolidated sales of NT$4,442M, a growth of 4.5% from the same period last year. The cumulative Jan.-Mar. consolidated sales reached NT$12,066M, grew by 3.7% from the same period last year. Focusing on areas such as multiple cameras of smartphones and ADAS, high frequency substrates, next generation electronic products, and 5G, biomedical, Electric Vehicles, and clean environmental protection, Wah Lee’s sales has strong growth momentum and expects promising future growth.
China has been the world’s largest automobile production market, as well as the largest automobile consumption market. It has been working on reducing air pollution and therefore encouraging new energy vehicles. Although the total automobile sales didn’t break record high in last year, but the new energy vehicles sales has grown by 62%.
Wah Lee has co-developed the China auto parts market with its suppliers, providing high end engineering plastics. The high end engineering plastics have been made into electrical parts of traditional internal combustion cars, as well as pistons for braking system, pulley for the engine system, and thermostats for the heat dissipation system. The company has become the upstream supplier for Tier-1 auto parts companies, such as Bosch, Valeo, and Asmo. The next step will be trying to penetrate into Chinese own brand-name automobile companies.
The auto parts supply chain is relatively conservative. Its specification process can be 3 to 5 years. But once the product is qualified, the future business is also more secured. Wah Lee will take this advantage into the new energy vehicles market and will focus on electrical parts and charging piles. The speed of the infrastructure construction will affect the promotion of the electrical vehicles. Wah Lee’s suppliers are strong in R&D capabilities. Wah Lee has complete product portfolio and good relationship with Tier-1/Tier-2 factories. Wah Lee’s customers’ products have also been sold to overseas after-market (AM). With the help of all these factors, the scale of the company’s business in the auto parts market will be growing together with the booming new energy vehicles.
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Sectors |
Jan.-Mar. 2019 Sales % |
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ICT materials (high-end engineering plastics & PCB) |
40.0% |
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Semiconductor |
20.0% |
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FPD (TFT LCD, touch panel) |
30.5% |
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Green Energy (solar, LED, rechargeable battery) |
4.8% |
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Others |
4.7% |