Taiflex Scientific gets operating license for new Kaohsiung factory

The China Post news staff

TAIPEI, Taiwan — Taiflex Scientific Co., Ltd. (8039-TW), a provider of flexible copper-clad laminate (FCCL) for upstream clients and a manufacturer of solar backing sheets, has received an operating license for a new factory in Kaohsiung. The company is expected to spend NT$600 million in capital expenditures this year. However, given its reservations regarding the continued high potential of the mobile phone market, it will not be expanding its FCCL production line.

Last year, Taiflex Scientific earned a total revenue of NT$10.284 billion and a gross operating earnings of NT$1.896 billion with gross margins of 18.43 percent. The company made an operating profit of NT$955 million with net profits totaling to NT$683 million before taxes and NT$580 million after tax. EPS was NT$2.81. Taiflex Scientific achieved year-on-year revenue growth of 0.16 percent while its gross margins dropped by 2.65 percent. The company is expected to maintain this year’s revenue above the NT$10 billion line with forecasted high digit growth in FCCL sales. The strategy is not to raise revenue but rather to improve production yields because this year’s primary strategy is to increase gross margins. Taiflex Scientific’s capital expenditure (CAPEX) last year was NT$470 million, while this year’s CAPEX budget is estimated at NT$600 million. This marks a year-on-year growth of 27 percent, NT$300 million of which would be used to improve current FCCL production equipment. No further large-scale expansion will be invested in FCCL production lines.

Fourth-quarter revenue of NT$2.938 billion was a record high for Taiflex Scientific. However, with a prolonged base period, the first quarter can expect a quarter-on-quarter drop of 25 to 30 percent, of which quarterly revenues from FCCL would decrease by about 30 percent and revenues from solar backing sheets by 10 percent.