Connector Maker Cheng Uei Targets 20% QoQ Rise in Q4 Revenues

Taipei, Oct.11, 2012 (CENS)--Benefiting significantly from the new connectors for iPhone5 and iPad mini, Cheng Uei Precision Industry Co., a major maker of connectors in Taiwan, saw historical high in revenues in the third quarter, targeting 20% quarter on quarter (QoQ) rise in revenues in the fourth quarter due to growth in distribution and production, of which its subsidiary Well Shin Technology Co. handles adaptors for iPhone5 and iPad mini.

Cheng Uei is Well Shin's biggest customer to account for 20% of the firm's revenues.

The maker saw revenues in August rise 21% month on month (MoM) to NT$9.5 billion (US$316.67 million). In the past, revenues from connecting wires contributed less than 20% of total revenues, but has grown to 23% in August with NT$2.22 billion (US$74 million) in monthly revenues, coupled with a 53% MoM growth in shipments.

Institutional investors estimate Cheng Uei's revenues in September is likely to exceed NT$10 billion (US$333.33 million), with over 30% quarter on quarter (QoQ) growth in the third quarter, much higher than the 20% predicted earlier in the quarter.

A market insider says iPhone5 connectors and connecting wires are 80% more expensive than previous models, which, along with growing shipments, will see iPhone5s bring sizable gains for Cheng Uei.

Besides, Studio A, an Apple reseller invested by Cheng Uei in Hong Kong, China and Taiwan, is expected to see rising revenues as Hong Kong is among iPhone5's first launch points. Institutional investors predict, with strong performance in retail, the firm is likely to score 15~20% QoQ growth in revenues in the fourth quarter.