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Lelon September revenues set another record, giving rise to positive outlook for the year

Press release [Tuesday 31 October 2017]

Benefiting from steadily growing demand in automotive electronics, telecommunication and network equipment, green energy and power supply markets, leading aluminum electrolytic capacitor manufacturer Lelon Electronics has posted record-breaking revenues two months in a row. September consolidated revenues reached NT$696 million, up 33.1% on year and 7.2% from the previous month. Cumulative revenues for the first nine months of 2017 totaled NT$5.22 billion, up 16.4% from the corresponding period of last year.

Lelon enjoyed a significant increase in sales of polymer capacitors and snap-in aluminum electrolytic capacitors in the first nine months of the year thanks to steady growth of telecommunication and network equipment, green energy and power supply markets. Shipments of polymer capacitors soared more than 50% from the level of the previous year and sales of snap-in aluminum electrolytic capacitors also hiked nearly 40%.

With respect to its strategy for polymer capacitors, the acquisition of polymer capacitor manufacturing equipment from Matsuki Polymer and the completion of its capacity expansion projects will make Lelon a non-Japan-based leading provider of SMD polymer capacitors. Recently launched Apple iPhones come with the support for quick charging, which is officially confirmed to also work with third-party chargers. Apple's continuing advancement in charging technologies is giving a boost to the quick charging market. Quick chargers impose more stringent requirements than conventional chargers in terms of their operating conditions and therefore need to use polymer capacitors to ensure higher product reliability and safety. The booming quick charging market will help make polymer capacitors a major growth driver of Lelon's revenues.

Lelon has been stepping up efforts toward high-end electronics and power supply markets in recent years. Among them, original automotive electronics will be a focus of its strategy. Having made its way into the supply chain for tier-1 American and European automotive electronics providers, Lelon will strive to penetrate into the Japan market in the future. Advancing IoT technologies are pushing the demand for smart telematics systems. The number of electronic control units (ECU) will grow with developments in ADAS, autonomous driving, IoV and electric cars. The number of automotive displays which present safety information collected by ADAS is expected to top 50 million units with a total value reaching US$11.6 billion by 2017 and US$21 billion by 2022, a growth rate of nearly 10%, according to IHS. In particular, center information displays and instrument panels will account for the largest share of market value. With the demand for automotive displays steadily on the rise, the aluminum electrolytic capacitor market can expect to grow as well.

The market of telecommunication and network equipment also fuels Lelon's growth momentum. Lelon has been performing outstandingly in China thanks to long-term partnerships and R&D collaborations between the company and local ICT solution providers. China is actively building up its 5G infrastructure and has announced the completion of phased 5G development and testing objectives with commercial operation planned for 2020. The market of telecommunication and network equipment will keep expanding with China's 5G investments ramping up.

Lelon has amassed excellent manufacturing and development capabilities. Its R&D team has engaged in long-term collaboration with Industrial Technology Research Institute in Taiwan to jointly research on critical technologies. It is also actively participating in research projects of customers and material suppliers to develop products catering to market needs. Japanese technical consultants are employed to help refine Lelon's technology and quality systems. Its flexible production model enables the production line to be adjusted quickly to accommodate order changes so it can agilely meet customer's delivery schedule and provide a stable supply.

Lelon's subsidiary aluminum foil producer Liton Technology is expected to generate higher second-half 2017 revenues compared to the first half thanks to strong market demand and added production capacity. Lidon Electronics Technology, a joint venture by Liton and China's largest formed foil producer HEC Technology, will also ramp up production of low voltage etched aluminum foil with plans to add capacity by 200,000 to 300,000 square meters of etched aluminum foil after volume production kicks off early next year.

Lelon is shifting development focus toward high-end products, targeting high-growth sectors including original automotive electronics, advanced telecommunication equipment and cloud data centers. The company will endeavor to develop new products to meet market demands and can enjoy significant growth this year with these markets continuing to expand.

DIGITIMES' editorial team was not involved in the creation or production of this content. Companies looking to contribute commercial news or press releases are welcome to contact us.

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