Wintek shares post gains on record sales in December


CNA

TAIPEI — Shares of Wintek Corp., one of Taiwan’s leading touch panel makers, posted gains yesterday after the company registered record high sales for December, dealers said.

As one of Apple’s suppliers, Wintek is expected to continue to ride the wave of strong demand for the iPhone and iPad and enjoy significant growth in the first quarter of this year, they said.

Wintek shares closed up 1.62 percent to NT$22 with 55.95 million shares changing hands. “Judging from the heavy trading volume, I suspect the buying largely came from institutional investors who have been upbeat about the company’s future sales growth,” Horizon Securities analyst Benson Huang said.

Wintek on Monday reported sales of NT$10.56 billion in December, up 7.43 percent from November and also up 33.97 percent from a year earlier.

It was the second consecutive month that the company registered record monthly sales.

For 2011 as a whole, Wintek’s sales totaled NT$93.77 billion, up 44.6 percent from 2010.

“The robust growth in the past two months defied conventional wisdom that the industry was in its slow season,” Huang said. “The positive development largely came from orders from Apple.”

According to Huang, Apple accounts for 25-30 percent of Wintek’s total sales.

“As the market widely expects Apple to launch iPad 3 in the first quarter of this year and iPhone 5 in the second half of the year, many investors are optimistic about Wintek’s revenue growth,” Huang said.

“Wintek has become one of the ‘Apple concept stocks,’ which has impressed the market,” he said.

Local media cited sources from Wintek as saying the company is asking its employees to work overtime to make up for a reduction of production caused by the upcoming Lunar New Year holiday, hoping to keep deliveries of first-quarter orders on schedule.

Aside from Apple, Amazon, Nokia and HTC are the major buyers of Wintek’s touch panels, Huang said, adding that the company has also benefited from strong demand for Amazon’s tablet computers.

Huang warned, however, that recent buying interest in Wintek after the company’s better-than-expected sales numbers in the past two months has pushed the stock closer to a level where it will face technical resistance, probably at around NT$22.50.

“Investors should keep an eye on a possible immediate pullback because of such technical factors,” he said.