Chip resistor firm Ralec Electronic is expected to report double-digit growth in revenues for 2014, buoyed by brisk demand for LED lighting, growing shipments of metal plate products, as well as its expanding OEM business, according to market watchers.
Ralec is set to post a double-digit sales increase in 2013, said the watchers. The chip resistor firm has enjoyed steady growth in shipments of chip resistors for LED lighting, and has seen production capacity for metal plate chip resistors run at full utilization, the watchers indicated.
Meanwhile, Ralec secured more OEM contracts from customers mainly in Asia in 2013, the watchers noted. A pull-in of OEM orders has buoyed the chip resistor maker's performance thus far in 2013, the watchers said.
Ralec's cumulative 2013 consolidated revenues came to NT$2.66 billion (US$88.8 million), rising 15.3% from a year earlier. Consolidated sales for December will register a slight decrease sequentially bringing the company's overall sales for the year to NT$2.9 billion, which would represent a more than 15% increase from 2012 levels, the watchers estimated.
Along with the sales growth, Ralec's net EPS for 2013 is forecast to top NT$4.50, according to the watchers.
Fellow chip resistor company Ta-I Technology, however, has benefited from rising shipments of heat sink products. Ta-I provides heat dissipation substrates mainly for LED lighting applications, and has clear order visibility beyond 2013, the watchers observed.
Ta-I shipped about 200,000 heat sink substrates a month during the first half of 2013, compared to monthly shipments of only 50,000 units during 2012, the watchers said.
Ta-I generated November revenues of NT$338 million, up 3.1% on month and 22.6% on year. Accumulated 2013 sales through November amounted to NT$3.51 billion, rising 5.5% from a year ago.