PCB manufacturer HannStar Board expects to enjoy a particularly strong second quarter of 2020, thanks to an influx of short lead-time orders for notebook applications.
Normal operations at its China-based suppliers and partners who were previously hit by the coronavirus outbreak will be also buoying HannStar Board's sales and profit performance in the second quarter, the notebook PCB specialist indicated.
Servers, network equipment and gaming consoles are other target markets of HannStar Board, which is striving to improve its product mix for profitability. Market watchers expect HannStar Board to post on-year profit increases in the second quarter and the first half of 2020.
HannStar Board reported consolidated revenue decreased 8.8% from a year earlier to NT$8.66 billion (US$289.4 million) in the first quarter of 2020, while gross margin climbed 1.6pp on year to 15.88%. The company generated operating profits of NT$506 million in the first quarter, up nearly 14% from the same period of 2019, but net profits slid to NT$203 million due to losses generated from its investment in Career Technology. EPS for first-quarter 2020 came to NT$0.41.
Career Tech, in which HannStar Board owns a majority stake, suffered from losses during the first quarter with both its operating and net income slipping into the red. Career Tech's EPS turned negative at NT$0.65 in the first quarter.
Article translated by Jessie Shen
