|Globetronics gets large orders for LED chips|
Source: The Star Online (Nov 26, 2013)
GEORGE TOWN: Globetronics Technology Bhd expects its earnings in the first half of 2014 to outperform the results of the previous corresponding period.
Group chief executive officer Heng Huck Lee told StarBiz the group had secured substantial orders for new high-value sensor and light-emitting diode (LED) chips for customers in the United States, Japan, and Europe.
“We have started production and will deliver them in the first half of 2014.
“These products are likely to generate 60% of the group’s revenue for the first half 2014, and should also contribute strongly to our bottom line,” he said.
Heng said in the second half of 2014, group sales would be driven by three new products.
“We will produce them in mid-2014. These are LED chips for the general lighting industry, sensors for smart devices, and imaging modules used in visual devices. These products are for our US and European customers,” he said.
Heng said the group would spend RM50mil in 2014 to expand its production as well as for design and development activities.
For the nine months of 2013, Globetronics posted RM47.5mil in pre-tax profit on the back of RM242mil in revenue, compared with RM37.4mil and RM204mil previously.
Heng, who is also The Free Industrial Zone, Penang, Companies’ Association’s president, said the electronics manufacturing service sector was expected to remain soft in this current quarter and next.
“Both the harddisk drive and personal computer market segments are expected to remain flat. As for the smartphone segment, there is growth in the overall market.
“The demand for the high-end models from established brand names is stable, while sales of second and third-tier brand names are growing strong, due to their lower pricing,” he said.
According to IHS, a global information firm specialising in diverse global market and economic information, magnetic-sensors will see worldwide revenue increase by 7% to US$1.73bil this year and 7% to US$1.85bil next year.
The market research firm forecasts annual growth of 4% to 8% from 2015 to 2017, when the global market is projected to reach US$2.2bil.
Magnetic sensors are used in mobile handsets, tablets, GPS systems and in the automotive industry.
Globetronics produces LED chips on this clean-room production floor . The company will spend RM50mil
next year to expand its production.