PCB Makers Increase Q3 Operations Due to Apple’s New Models Launching and the Raw Materials Stocking Trend

Source: PCB Shop
Last updated: 2018/08/15

Apple’s earnings and outlook are better than expected, thus stimulating Apple’s market value to hit US$1 trillion and spurring on Taiwan’s Apple supply chain. Therein, Apple’s PCB supply chain, including Zhen Ding Tech, Flexium Interconnect, Compeq, and Unitech, anticipate increasing their production capacities with the beginning of peak season in Q3 in order to stock up on raw materials for the launch of new models.
 

       This year, Flexium Interconnect have obtained new orders for Apple’s communication management and wireless transmission modules. As the gross profit margin is better than that of last year’s wireless charging modules, it will help Flexium Interconnect’s profit in the second half of the year. Feeling optimistic about the upcoming peak shipment season in the second half of the year, the company revenue is anticipated to grow quarter by quarter. Following the mass production of new materials, Flexium Interconnect noted that the gross profit margin will likely increase further. Its production and inventory volume in Q3 are expected to increase by 0~10% annually, with peak shipments falling from August to November.
 

       Zhen Ding Tech has performed well this year. Following the beginning of the traditional peak season in the second half of the year, its operations will continue to rise quarter by quarter, and its annual revenue expected to hit a record high again. As Zhen Ding Tech has won more orders, its revenue in the second half year is growing and is expected to reach an annual revenue of NT$120 billion, with a year-on-year increase of NT$10 billion, to outperform the industry. The substrate like PCB (SLP) business, in particular, has turned profitable since the end of last year.
 

       Compeq’s operation in the second half of the year is growing quarter by quarter. Due to increasing SLP competitors and a higher inventory on old models, it is facing more pressure on market prices this year. However, by improving its yield and product structure, Compeq’s gross profit margin and profit performance have stabilized this year. (News source: Liberty Time Net)

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