Tong Ming and Chun Yu Expect Brighter Performance This Year

With the global economy recovering, Taiwanese fastener manufacturers, including Tong Ming Enterprise Co., Ltd. and Chun Yu Works & Co., Ltd., are expecting rosier performance this year than last year, when Taiwan's fastener exports hit a record high, according to institutional investors.

According to the latest statistics compiled by Steelnet, a market information website for steel and related industries in the Greater China region, Taiwan's fastener exports reached 1.459 million tonnes in 2013 to beat a record high of 1.422 million tonnes set in 2011, mostly driven by such high-margin sellers as stainless steel fasteners and automotive fasteners.

Institutional investors pointed out that as the global economy is gradually on the mend, market demand for fasteners is therefore very likely to significantly surge worldwide this year, particularly in China, where demand for fasteners are estimated to grow 10% at least  in the year, offering solid fundamentals for Taiwanese fasteners to grow.

Among them, Tong Ming, a stainless steel fastener supplier with a considerable share in the Chinese market, perhaps will most likely witness banner performance this year. The company posted annual revenue of NT$6.224 billion last year, up about 10% yearly, with net profits of NT$241 million, or NT$1.56 per share, up 30.76%.

The company explained that its strong profit growth was mainly due to its optimized product mix centered on high-margin products, in addition to stable international prices of nickel.

After a rosy year in 2013, institutional investors noted that the company's performance for the first quarter of this year is expected to keep gaining steam on strong nickel prices, given that the international price has consistently trended upward, to recently reach US$15,700 per tonne for a 10-month high.

Meanwhile, Chun Yu, which has started delivery of fasteners for construction of railway lines in China, is expecting explosive growth in the short term, mentioned institutional investors. Additionally, the company's heavy fastener making machines and automotive fasteners supplied on an OEM (original equipment manufacturing) basis will also drive growth. (SC)