Circuit protection device specialist Thinking Electronic Industrial saw its gross margin and operating margin climb to record highs of 46.12% and 31.94%, respectively, in the second quarter of 2020, when net profits surged 69% on quarter and 35.2% from a year earlier to NT$338 million (US$11.5 million). EPS for the quarter came to NT$2.64.
Thinking credited its positive performance during the second quarter to rising demand for notebooks and tablets, as well as recovery in factory utilization rates in China. Besides, the company started fulfilling new orders for home appliance products during the quarter.
Thinking's net profits for the first half of 2020 amounted to NT$538 million, rising 7.6% on year, with EPS reaching NT$4.20.
Thinking provides thermistors, varistors and temperature sensors, with over 70% of its manufacturing located in China. With its China-based factory utilization rates recovering, the company was able to provide more capacity support for a pull-in of orders placed by its Asia-based clients in the second quarter, according to the company.
Meanwhile, new sensor orders for home appliance applications started ramping up at the end of May, with the orders making a positive contribution to its product mix during the second quarter, Thinking continued.
Looking forward, Thinking expects stable growth in customer orders during the third quarter, but is uncertain about order visibility for the fourth quarter.
Article translated by Jessie Shen
