Cheng Uei Precision's Earnings Grow 284% in H1

Taipei, Sept. 6, 2011 (CENS)--Cheng Uei Precision Industry Co., Taiwan's leading manufacturer of connectors, registered NT$1.013 billion in after-tax earnings, or NT$2.15 per share, in the first half, up 284% from a year earlier.

Cheng Uei, the flagship of the Foxlink Group, is one of the few connector makers in Taiwan who saw positive growth in earnings in the first half, and expects to see continued sales growth and earnings in the third quarter.

After strengthening distribution by acquiring 51% stake in Studio A, Inc.(recognized as outstanding ‘Apple Premium Reseller' by Apple Inc.), a distributor focusing on Apple products in Taiwan, Cheng Uei will realize substantial growth in sales.

Capitalized at NT$180 million, Studio A scored NT$5.5 in per-share after-tax earnings in the first half. With hot selling Apple products and imminent new product launches, Studio A is expects to see substantial growth in sales in the second half.

According to a survey by RetailSales, Apple retailers led the 160 retailers who responded in the U.S. in per-square-foot sales last year, followed by Tiffany, which suggests Cheng Uei to see ample growth potential in China where it has acquired exclusive distributorship for Apple products.

Cheng Uei predicts its retailers to reach 80 in the Asia-Pacific region by the end of this year and grow over 50% to reach 120 by 2012.

The sales peak in enabled Cheng Uei to post NT$7.462 billion in consolidated sales in July for an all-time high. As Apple will debut new-generation smartphones in September, Apple supply-chain manufacturers, including Cheng Uei, will see sales in August continue to break new records. Institutional investors predictd Cheng Uei to see third-quarter consolidated sales grow 20% from the preceding quarter.