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Cheng Uei Precision Industry Forecasts Strong Q4 Performance and Robust Growth in 2024 Fueled by New Product Launches

Bu Qingfan, VP of Zhengwei, anticipates a Q4 boost in performance, driven by new orders from major customers and eyes 2024 growth
Taiwan
c 2392.TW Entertainment 100 Mid and Small Cap 2000
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Bu Qingfan, Vice President of Cheng Uei Precision Industry, announced at today’s press conference that the company is poised for a robust fourth quarter performance, surpassing the third quarter and the same period last year, fueled by the steady momentum of new product launches from major customers. The outlook is optimistic, with expectations of further growth in components, systems, and power products due to new orders for US game consoles and smartphones in the coming year, positioning the full-year performance to surpass the current year.

In the third quarter, Cheng Uei Precision Industry achieved a net profit after tax of 951 million yuan, marking a quarterly increase of 24.6% and an annual increase of 30.2%, setting a new single-quarter peak for the year. Earnings per share (EPS) rose by 27.6% quarterly and annually to 2.04 yuan, a growth of 35.09%. Bu Qingfan addressed concerns about gross profit margin, expressing confidence that the fourth quarter would maintain the 15% level seen in the third quarter. The company’s future strategy includes ongoing efforts to reduce production costs through automation, personnel refinement, and product structure optimization, anticipating a better growth rate in the next year.

Examining the product portfolio for the first 10 months of this year, system products, including Cheng Uei Precision Industry e-sports game console joysticks and headsets, accounted for 41%, while 3C components like Type-C and chargers constituted 35%. Channels such as STUDIO A and Straight A held 14%, with Fuwei Energy’s new business comprising 10%.

Despite economic uncertainties in 2024, Bu Qingfan remains optimistic, attributing the potential growth of Cheng Uei Precision Industry’s 3C components and system products to the conclusion of inventory destocking in the electronics industry. The company aims to increase the number of agent products and expects improved performance in channels compared to the current year. Fuwei Energy, having secured the second phase of Taipower’s offshore wind power project, anticipates fund recognition in batches during the period leading up to its completion in 2025.

Liu Sufang, a spokesperson for Cheng Uei Precision Industry, highlighted the company’s extensive production capacity layout, with operating bases in Taiwan and various locations in China and overseas, including Arizona, Seattle, San Jose, Da Nang, Vietnam, Hong Kong, Ho Chi Minh City, Myanmar, and India. In response to American customer requirements, Zhengwei plans to expand production lines in Vietnam and has longer-term plans for Chennai, India.

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