Compeq pledges another NT$2.5bn in expansion - Taipei Times

Printed circuit board (PCB) maker Compeq Manufacturing Co (華通電腦) has pledged NT$2.5 billion (US$79.6 million) to install new production lines at its plants in Taoyuan after the InvesTaiwan Service Center approved its application to participate in the government program, the Ministry of Economic Affairs said on Friday.

It was Compeq’s second application to be approved since it invested NT$2.5 million in August 2019 to expand production capacity to meet rising demand. Pc Board

Compeq pledges another NT$2.5bn in expansion - Taipei Times

The investment comes as demand from home and overseas markets for high-density interconnect PCBs and advanced PCBs used in satellite communication equipment has continued to grow, the ministry said in a statement.

“The company is planning its second investment in Taiwan given the increased demand for high-end technology and confidential communication products, as well as consideration of industrial upgrading,” the ministry said.

Compeq is planning to expand smart production lines at its plants in Taoyuan’s Lujhu (蘆竹) and Dayuan (大園) districts, the ministry said.

In addition, the company plans to implement a green energy procurement program and install high-efficiency water recycling equipment at its plants as part of its commitment to sustainable manufacturing, the ministry said.

Compeq, which produces multilayer and double-sided PCBs, last week reported profit for last quarter that was better than expected, as it saw strong handset PCB shipments to a major US brand in the third quarter, while shipments for some notebook computer PCB orders were delayed to last quarter due to Shanghai COVID-19 lockdowns in the second quarter.

Net profit increased 74.5 percent quarter-on-quarter and 60.46 percent year-on-year to NT$2.51 billion, the highest quarterly level in the company’s history, with earnings per share of NT$2.11, the company said in a regulatory filing on Thursday.

Third-quarter revenue was NT$21.69 billion, up 32.81 percent from the previous quarter and an increase of 23.57 percent from a year earlier, also a record high, it said.

In the first three quarters of the year, the company’s revenue rose 28.29 percent year-on-year to NT$55.57 billion, while gross margin improved from 17.61 percent to 19.94 percent over the period.

Net profit in the nine-month period exceeded last year’s full-year level, increasing by 87.58 percent from a year earlier to NT$5.84 billion, with earnings per share of NT$4.9, it said.

Yuanta Securities Investment Consulting Co (元大投顧) analysts said that Compeq’s revenue for this quarter would remain robust as its handset PCB shipments to a major US brand are likely to grow by 5 to 10 percent from last quarter due to seasonal factors, while COVID-19 disruptions at Hon Hai Precision Industry Co’s (鴻海精密) Zhengzhou plant in China had minimal effects on business.

Compeq’s high-end notebook computer PCB shipments to a major US brand are also expected to grow by up to 5 percent from last quarter following the commencement of small volume shipments, Yuanta said in a note on Friday.

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Compeq pledges another NT$2.5bn in expansion - Taipei Times

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