Manufacturing News

IPC sector to see upswing trend in second half of the year

Despite the sales doldrums in the first half of this year as a result of the impact of the global financial tsunami, Taiwan's industrial personal computer (IPC) sector will see a upswing trend in the second half amid economic recovery, introduction of new products and development of new markets.

Taiwan's leading IPC manufacturers, including Advantech Co., Adlink Technology Inc., Posiflex Inc. and Syntech Information Co., are assured of better sales performance in the second half than the first one.

Nomura Securities noted Advantech will see promising outlook as it has enhanced operating efficiency by reorganizing internal structure and it will see growth in sales to mainland China market amid the economic recovery.

Advantech believed it will see a 10% annual sales growth with gross profit margin maintaining at over 40% in the second half of this year. Mainland China will become Advantech's most important market due to the implementation of major infrastructure projects. The company predicted it will see conspicuous sales growth in the fourth quarter of this year.

Posiflex estimated it will see a flat performance or a slight growth in sales in the second half of this year from a year earlier because of reduction in inventories in distributors and the increased shipments of new products. The company encountered a 40% decline in sales in the U.S. and European markets in the first half of this year because of the economic recession.

Posiflex posted NT$126 million (US$3.82 million at US$1:NT$32.9) in sales in August, up 25% year-on-year and up 3% from the preceding month. The company has seen monthly sales reach over NT$100 million (US$3.03 million) for four consecutive months, showing its sales performance is getting stronger.

Syntech said it has seen growth in orders for palm-size IPCs and scanners since the beginning of the second half of this year. But most of these orders will be fulfilled in the fourth quarter, causing an unclear sales growth in the third quarter.

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