LCY Technology, which produces and sells copper foil products, started trading on the mainboard of the Taiwan Stock Exchange (TWSE) on June 28. It started trading at NT$24.80 (US$2.17), and closed at NT$33.30.
LCY reported net profits surged 47.6% from a year earlier to NT$599 million in 2017, with EPS reaching NT$4.28. The company generated revenues of NT$3.77 billion in 2017, up about 26% on year, while gross margin climbed 7pp to 23%.
Sales generated from the automotive segment accounted for 30% of LCY's overall revenues in 2017, followed by sales from the optoelectronics sector with 14%, and those from the notebook and HDI board segments with 13% each. LCY also provides copper foil for server, handset and consumer electronics applications, which accounted for 12%, 12% and 6%, respectively, of company revenues in 2017.
The copper foil market shifted from a state of oversupply to undersupply in 2017, which buoyed LCY's sales and profit performance, the company said. LCY also expressed optimism about the future market outlook citing demand driven by automotive electronics, 5G and other emerging applications.
China has been LCY's largest market accounting for about 70% of company revenues. LCY has obtained orders from China's major high-end PCB makers and CCL suppliers. LCY has 12% of revenues generated from the Taiwan market, where it supplies copper foil for mainly handset PCBs and HDI boards.
Thailand and South Korea are also target markets of LCY accounting for 9% and 6%, respectively, of company revenues. LCY ships copper foil for mainly automotive boards to Thailand, and for handset PCBs to South Korea.
Article translated by Jessie Shen
