Passive Component Makers Earn Good Profits in 2009

Taipei, Jan. 11, 2010 (CENS)--Impervious to impacts of the global financial tsunami, some Taiwanese makers of passive components are expected to report shining profits for 2009, according to institutional investors.

For example, Cyntec Co., Ltd., a maker of power chokes and current sensing resistors, is believed to post EPS (earnings per share) of NT$5.5-6 for entire the year as the most profitable among passive component manufacturers, mainly because its aggregate EPS for the first three quarters of 2009 already reached NT$4.4 and the firm will most likely keep its gross profit rate at a level of 35% in the fourth quarter of 2009.

Institutional investors estimate the firm's combined revenue for the fourth quarter of the year at NT$1.43 billion, which included NT$420 million earned in December alone and represented a decline of under 6% from a quarter earlier.

Coincidentally, the thick film resistor maker Rolec Electronic Corp., by actively cutting operating and production costs, has boosted its gross profit rate to 32% in the third quarter of 2009 and will probably see its EPS exceed NT$5 for the full year, the firm's second-highest level of its kind, behind only NT$6.43 posted in 1990.

In fact, Rolec has effectively boosted its shipments and driven up single-month revenues to a plateau of NT$150 million after successfully penetrating the distributor segment in China in the second half of 2009. Hopefully, the firm is expected to score NT$158 million or more for its December revenue.

In the meantime, Thinking Electronic Industrial Co., Ltd., engaged in production of protective circuit components, has posted aggregate EPS of NT$3.92 for the first nine months of last year, including NT$2.48 realized in the third quarter. With downstream demand staying strong, the firm is likely to report solid sales revenue for December and EPS of about NT$5 for entire the year.