Pegatron confident about H2 performance

By Stephanie Chao ,The China Post

TAIPEI, Taiwan — Pegatron (�M��) Chairman T.H. Tung (���l��) said he will remain confident about the company’s performance in the coming months, and denied the company will follow in others footsteps by pointing out that Pegatron already has an adequate distribution worldwide, during its shareholders meeting.

In response to speculation of Hon Hai (�E��) re-entering the Indian market, Tung spoke of Pegatron’s future, saying that the company has offices and factories based in countries such as Mexico and the Czech Republic, and repairing bases in Japan. ��Pegatron will not set up a base in other locations just because rivaling companies are heading there,�� Tung said.

According to the information and statistics Tung provided, Pegatron factories are of a considerable scale in Mexico and the Czech Republic. Currently, there are also 700 to 800 workers at the repair bases in Japan, at which the worker numbers have grown considerably since its humble beginnings with around 100 employees. The chairman also addressed concerns regarding China’s ��red supply chain�� (����������), and maintained an unruffled attitude toward the issue, saying that in the IT industry, ��competition is already on a global scale and ever present.�� ��If other businesses are performing better, then the company should strive to advance, and ultimately let the consumers decide the winner,�� Tung said, further sharing his belief that other countries do not have more advantageous policies implemented.

The chairman explained that while the country can provide much needed counseling for companies, it is up to the businesses to figure out and cultivate their own advantages.

An industry that does not rely too much on help or guidance can perform better in the long-run, Tung said.

Optimistic for H2: Tung Tung also expressed optimism for the second-half of the year, as the busy season is approaching. Factories in China were also increasing recruitment efforts, he said.

The chairman backed up his optimistic forecast by citing peak periods such as the back-to-school season with its high technology product sales, end-of-the year sales, and big-named clients’ launching of new products.

IoT, Wearables and More During the shareholders’ conference, Tung confirmed Pegatron’s dividend of NT$4.1 per share, and that Pegatron also saw a good performance last year, with consolidated revenue at NT1.0197 trillion, an annual increase of 7.4 percent, and gross margin at 5.8 percent.

Tung also delivered positive news on successfully entering the wearable and automotive electronics industries, and will continue to bring in new development opportunities in the future.

Pegatron’s foray into the two industries will continue this year, concentrating on three main products: information technology, communication and consumer electronic products.

Tung believes they will also continue making new advancements in the Internet of Things (IoT, ���p��), wearable devices and automotive electronics.