Circuit protection device specialist Thinking Electronic Industrial is looking to grow sales generated from the car electronics sector to 10% of company revenues in 2017, according to the company.
Thinking Electronic is looking to enter the supply chain of Europe’s first-tier automotive vendors and also the supply chain of China’s auto industry, said the company, which has about 6% of its total revenues generated from the car electronics sector.
Thinking Electronic disclosed production capacity for car-use products is located at its plants in southern Taiwan and Changzhou, Jiangsu Province (China). The company spent about NT$500 million (US$16.4 million) in capex for 2016 to mainly expand production capacity at the two plants.
Thinking Electronic will cut its capex for 2017 to NT$100-200 million, the company added.
Protective components for power supplies remain Thinking Electronic’s largest revenue contributor, accounting for 35% of sales. The company said it will continue to diversify its offerings.
Thinking Electronic has cut into the supply chains of electric vehicle vendors including Tesla and BYD by providing protective components for charging piles, according to industry sources. In response, the company said it does not comment on orders and customers.
Thinking Electronic reported consolidated revenues of NT$5.41 billion for 2016, up 5.7% on year, while gross margin climbed 2.63pp from a year earlier to 31.04%. The company generated NT$7.03 in EPS.
Shareholders of Thinking Electronic have approved the distribution of a NT$3.30 cash dividend per share for 2016.
Thinking Electronic saw its gross margin climb to a record 35.92% in the first quarter of 2017. EPS for the quarter reached NT$1.61, compared with NT$1.88 in the prior quarter and NT$0.97 of a year ago.