Hiwin Technology, a prominent manufacturer in transmission and control technology, reported consolidated revenue of NT$2.102 billion for June, marking a 2% month-on-month increase despite a 5.2% year-on-year decline. This figure represents the highest monthly revenue in the past nine months. Cumulatively, the first half of the year saw consolidated revenue of NT$11.689 billion, down 5.1% from the previous year.
Despite an uncertain industry outlook, Hiwin is optimistic about progressive operational improvements throughout the year, with a profit target surpassing last year’s performance. To retain talent, the company announced a salary increase for employees by approximately 3% to 5%, effective from July.
In the second quarter, Hiwin’s consolidated revenue reached NT$6.183 billion, a 12.2% quarterly increase but a 6.1% annual decrease, the highest in the past three quarters. The company expects operations to improve quarter by quarter, with stronger order acceptance and shipments in the latter half of the year.
Hiwin attributes the revenue decline to a high comparison base from last year’s post-pandemic demand surge in mainland China. However, the company has seen a gradual rebound in orders, particularly from the semiconductor, automation, aerospace, and infrastructure equipment sectors. Additionally, urgent orders for transmission components related to smartphone manufacturing equipment have boosted recent performance.
Currently, the average order visibility for linear slide rails is about 2.5 months, and for ball screws, approximately 3 months, with some ball screw delivery times exceeding three months. To manage inventory and meet customer requirements, Hiwin is maintaining delivery times within three months and plans to continue overtime work in July to fulfill orders.
With a strategic focus on improving quarterly operations and addressing market demands, Hiwin Technology is poised for a steady recovery in the coming months.
