CFTC eyes revenue growth in 2024, driven mainly by auto products

Ninelu Tu, Taipei; Joseph Tsai, DIGITIMES Asia 0

Credit: CFTC

With rising demand for automotive-related components and the addition of small-volume shipments of textile machinery-related products starting in 2024, the Taiwan-based high-end precision stamping company China Fineblanking Technology (CFTC) expects its sales to enjoy stable growth in 2024.

The continuous increase in demand from automotive customers has enabled CFTC to achieve the highest sales figure in the past seven quarters in the fourth quarter of 2023.

Despite the impact of the annual inventory check by its automotive customers in December 2023, leading to the postponement of some orders' delivery to January, CFTC's December 2023 revenues remained at a steady level and grew 12.2% compared to the same period in 2022. The company's revenues for the fourth quarter of 2023 reached NT$692 million (US$22.11 million).

Revenues for the full year of 2023 were NT$2.31 billion and despite a drop of 9.16% on year, CFTC still expects profitability improvement for the previous year thanks to changes in the product mix.

CFTC also pointed out that the December 2023 revenues comprised NT$185 million from automotive components, accounting for 79.88%; and NT$25 million from HDD components including VCM Plate, accounting for 10.79%.

The shipment volumes for transmission parts of commercial vehicles such as heavy-duty trucks and return orders for fuel vehicle products are still growing. Additionally, demand for the company's new energy vehicle parts from automakers is also rising.

While some automotive component shipments were affected by the customers' annual inventory check, leading to an on-year revenue decline in December, the overall trend of automotive components is expected to drive up the company's revenues in 2024, maintaining momentum from the second half of 2023. As for HDD components, shipments will stay stable.

With CFTC's new textile machinery products beginning a small volume of shipments in early 2024 and returning orders for fuel vehicle components rising, sales in the first quarter of 2024 are expected to perform robustly despite the slow season. The company also expected the two product lines to serve as major growth drivers for 2024.

The company will also begin shipments of various new energy vehicle components such as seat parts, clutch parts, and electric drive system components to its customers in China gradually in 2024.