Alexa
  • Directory of Taiwan

Apple's new gadgets to lift casing supplier's sales: brokerages

Apple's new gadgets to lift casing supplier's sales: brokerages

Taipei, Aug. 25 (CNA) Foxconn Technology Co., one of Taiwan's leading metal casing suppliers, is expected to benefit from the launch of Apple Inc.'s new devices in the third quarter, foreign brokerages said Saturday. Barclays Plc, a U.K.-based bank, and HSBC Securities said Foxconn Technology's sales for the July-September period are likely to rise about 50 percent from the second quarter on the back of Apple's orders. Foxconn Technology's consolidated sales in the second quarter fell 10 percent from the previous quarter to NT$18.72 billion (US$624 million).
But its sales regained steam in July, rising 17 percent from June and 38 percent from a year earlier to NT$9.5 billion. Barclays said Foxconn Technology is likely to win orders from Apple to supply housings for the iPhone 5, which the market widely anticipates will be unveiled in September.
The bank also sees the casing maker's average selling price rising by 20-30 percent accordingly. In addition to making the iPhone's housing, Foxconn Technology could also serve as a casing supplier for Apple's iPad mini tablets and MacBook computers and for Japan-based Nintendo's new gaming consoles to further lift its sales, Barclays said. The bank said Apple is expected to account for 23 percent of Foxconn's total sales in 2012, up from the 13 percent share recorded in 2011. That percentage may rise further to 29 percent in 2013, it predicted. Barclays estimated that Foxconn Technology's gross margin would improve to 12.7 percent and 12.8 percent in 2012 and 2013, respectively, from 9 percent in 2011. Both Barclays and HSBC have given an "overweight" recommendation on Foxconn Technology shares, while Barclays has issued a target price of NT$150 for the stock amid optimism over the casing supplier's earnings outlook.
Shares of Foxconn Technology closed down 1.32 percent at NT$112.50 on the Taiwan Stock Exchange Friday. (By Lo Hsiu-wen and Frances Huang)


Updated : 2021-07-31 17:14 GMT+08:00