Asustek unseats Hong Hai as Taiwan's No. 1 electronics maker

Asustekc Computer Inc., one of the leading electronic suppliers in Taiwan, scored consolidated revenue of NT$71.7 billion in February, slightly higher than NT$71.585 billion posted by Hong Hai Precision, thus becoming the No. 1 supplier of electronics and information products on the island, according to industry sources.

Thanks to its operation strategy of electronic manufacturing service (EMS) and shipment of PS3 increasing, Asustek saw its February consolidated revenue surge 8.9% from a month earlier and shoot up 157% from a year earlier.

Asustek's whopping revenue growth of 157.2% in February eclipsed Hong Hai Group's 41%, sending shock waves through institutional investors.

Asusteck's aggregate revenue amounted to NT$137.5 billion in the first two months, for a whopping annual growth of 117.3%, while Hong Hai's revenue came to NT$159 billion.

Even though Asustek's aggregate revenue for the first two months still lagged behind Hong Hai's by a margin of NT$21.5 billion, Asustek is very likely to rake in total revenue of NT$200 billion in the first quarter, which is expected to help narrow the revenue gap with Hong Hai Group.

Asustek projects its annual revenue to grow 47% from a year earlier to hit NT$750 billion in 2007, while Hong Hai forecasts it revenue to surge 30% to NT$1.2 trillion for the year.

Asustek's shipment of notebook PCs, motherboards and graphic cards declined in February due mainly to long Chinese New Year holidays. However, the shipment of PS3 increased to contribute 25% of the company's revenue, helping the revenue continue to grow in the month.

With the market demand for notebook PCs and motherboards increasing in March, Asustek is expected to see its monthly revenue soar past its original projection, becoming another successful supplier of EMS in Taiwan, according to institutional investors.

source & copyright: CENS