Hon Hai posted biggest sales in domestic electronics sector in Q1

Hon Hai Precision Industry Co. is expected to retain its position as Taiwan's largest electronic manufacturer in terms of sales in the first quarter of this year, followed by Quanta Computer Inc., Asustek Computer Inc., Compal Electronics Corp., and BenQ Corp.

Hon Hai is expected to score NT$200 billion (US$6.15 billion at US$1:NT$32.5) in sales in the first quarter of this year, up 40% year-on-year. Quanta estimated it would see first-quarter sales grow 30% to reach NT$100 billion (US$3.07 billion). Asustek projected sales to grow 20% to NT$90 billion (US$2.76 billion), and Compal said sales would rise 10% to reach NT$56 billion (US$1.72 billion) in the first quarter. Thanks to its merger with the handset unit of Germany-based Siemens AG, BenQ is expected to snatch 80% annual growth in sales, hitting NT$48 billion (US$1.47 billion) in the first quarter.

An institutional investor estimated Hon Hai would see monthly sales reach over NT$60 billion (US$1.84 billion) in March, while Quanta, Taiwan's largest manufacturer of notebook personal computers, looks likely to see March sales hit NT$35 billion (US$1.07 billion). March sales for Compal and BenQ will likely hit between NT$19 billion (US$584.61 million) and NT$20 billion (US$615.38 million), respectively.

Investment banker Morgan Stanley estimated Hon Hai would see first-quarter sales drop 26% from the fourth quarter of last year, while its profit margin is expected to grow at a smaller pace.

Due to diminishing sales in motherboards and iPod music players, Hon Hai is expected to have difficulties posting NT$70 billion (US$2.15 billion) in March sales. Hon Hai is one of the largest contract manufacturers of the iPod for U.S.-based Apple Computer Inc.

Quanta said it would see first quarter monthly sales peak in March with a sales growth of more than 30% year-on-year.

Like Quanta, Compal boasted it would also see first quarter monthly sales hit a high in March. The company shipped 910,000, 770,000, and 950,000 NBs in January, February, and March, respectively.

BenQ said the sales benefits of merging with Siemens's handset unit wouldn't show up until after the second quarter of this year. An institutional investor estimated BenQ's March sales would amount to between NT$19 billion (US$584.61 million) and NT$19.5 billion (US$600 million), while the company's combined sales in the first quarter of this year would likely drop between 10% and 15% sequentially.

source & copyright: CENS