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Compal's smartphone, tablet segments forecast to drive its 2015 growth

Compal's smartphone, tablet segments forecast to drive its 2015 growth

Taipei, Jan. 5 (CNA) Taiwan's Compal Electronics Inc., the world's second-biggest contract maker of notebook computers, will continue to benefit from its smartphone and tablet businesses this year on the back of new outsourcing orders, Nomura Securities predicted Monday. "We believe smartphones and tablets would remain the growth drivers in 2015, given the increasing order allocation by existing clients and new customers on the smartphone side," Nomura analyst Patrick Chen wrote in a note to clients. Increasing outsourcing by smartphone vendors, along with Apple Inc.'s strategy of diversifying its suppliers, has benefitted Compal, said Chen, maintaining a "buy" rating on Compal shares. He forecast that Compal's combined revenue from its smartphone and tablet business will increase to 17 percent of its total revenue, compared with 14 percent in 2014. The increase will be driven by a bigger input from the company's profitable smartphone original design manufacturing (ODM) business and better utilization of its tablet production capacity, Chen said. Compal's notebook business, meanwhile, is also expected to boost the company's operating margin, starting in the second quarter of 2015, once its ongoing price increase negotiations with its customers are successful, he said. Citing strong demand in the U.S. market, Chen projected that Compal's notebook shipments will beat Nomura's previous estimate of 3.5 million units and reach 3.8 million units by December. As of 12:09 p.m. Monday, Compal shares had climbed 1.58 percent to NT$22.55 (US$0.71) in Taipei trading. (By Jeffrey Wu)


Updated : 2021-09-23 04:13 GMT+08:00