Pegatron shares rally on sales forecast


CNA

TAIPEI — Shares of Pegatron Corp., a Taiwan-based contract electronics maker, staged a rally yesterday against a backdrop of a narrow range of movement on the broader market after the company gave an optimistic sales estimate for 2012, dealers said.

As one of Apple’s suppliers, investors have embraced high hopes that robust sales of iPhones and iPads will further boost Pegatron’s bottom line, they said.

Pegatron closed up 7 percent, the maximum daily increase, to close at NT$35.60 with 19.85 million shares changing hands, while the benchmark weighted index was up 0.41 percent at 7,082.97 points.

Pegatron Chairman Tung Tsu-hsien said a day earlier that the company expects to post a year-on-year 40 percent increase in sales for 2012 on the back of the diversification of its customer base.

“When the broader market fluctuated in a narrow range, investors tended to pick up stocks such as Pegatron, which has delivered positive leads,” Mega Securities analyst Alex Huang said.

Market analysts said Pegatron, a manufacturing arm of personal computer vendor Asustek Computer Inc., has secured orders from Apple since the third quarter of last year by assembling iPhones for the U.S. consumer electronics giant.

In addition, they said, Pegatron has secured more orders from Apple to assemble the iPad 3, a new device expected to be launched in the first quarter of this year, adding that Pegatron has become part of Apple’s supply chain.

Moreover, they went on, the Taiwanese company has also received orders from Japan’s Toshiba, Taiwan’s Acer and China’s Lenovo for notebook and tablet computer production.

Pegatron declined to respond to questions about individual customers.

The orders from the new customers are expected to serve as a driver of Pegatron’s growth in the future, the analysts said, adding that the forecast of 40 percent growth is higher than a market consensus of a 20 percent increase.

Despite the difficulties caused by global weakening demand, Pegatron posted a year-on-year 13 percent increase in sales in 2011 due to its broader customer base, according to the company.