Connector Maker Cheng Uei Raises Q3 Revenue Target to 30%-plus

Taipei, Sept. 19, 2012 (CENS)--Driven by better yield rate of the new connectors in initial output than Hon Hai, Cheng Uei Precision Industry Co., a major maker of connectors in Taiwan and flagship of the Foxlink Group, claims to have received abundant orders for iPhone 5 connector from Apple Inc., hence its raising of third-quarterly growth to exceed 30% from 20%.

Foreign investors say Apple has for the first time changed iPhone's connector from 30-pin to nine-pin since the first launch five years ago of the first-generation iPhone, with the nine-pin connectors to generate for Cheng Uei twice the revenues and gross profit margin (GPM) than the traditional 30-pin connectors.

Cheng Uei's revenues in August exceeded NT$ 9.5 billion (US$ 316.66 million), surging about 20% month on month (MoM) to be better-than-expected. Cable connectors only took a share of sub-20% in the past but has risen to 23% in August, with the firm's cable-related revenues hitting NT$ 2.22 billion (US$ 74 million), up NT$ 800 million (US$ 26.66 million) MoM, and cable shipments soaring 53% MoM.

Institutional investors forecasts the firm's revenues in September to continue to boom, due mainly to simmering pre-sale of iPhone 5. Morover, Apple is using the nine-pin connector to its iPad mini, which could drive Cheng Uei's revenues to over NT$ 10 billion (US$ 333.33 million) in September, a new monthly high.

A executive of the firm says fourth quarter orders would continuously rise to pave a bright outlook for revenues and operation.