Teco of Taiwan Gains Steam from Wind Turbine and EV Businesses
2014/10/08 | By Steve ChuangTeco Electric & Machinery Co., Ltd., Taiwan's veteran manufacturer of heavy-duty motors and household appliances, is increasingly gaining steam from its wind turbine and electric vehicle businesses, hence expected by institutional investors to finish this year with double-digit revenue growth and EPS (earnings per share) of NT$2.2.
In the wind turbine business, the firm's assembly plant in Hunan Province, central China, has just landed its biggest order ever for 25 wind turbines from a local state-owned electric utility.
Institutional investors comment that the 25 turbines will have capacity of 2 megawatts each, with three to employ longer rotor blades specifically for wind speed of sub- 6 m/sec, and Teco is expected to net NT$2 billion in revenue from the deal.
Meanwhile, TECO has been developing a planned wind farm with annual installed capacity of 600 megawatts in the province, to call for up to 300 wind turbines.
On another front, TECO is also enjoying growing presence in the electric vehicle sector by focusing mainly on niche models for zoos, amusement parks, beaches, golf courses and public transportation. The recent order Teco has garnered is to convert 800 conventional tricycles into e-trikes, with order value of NT$200 million to pave the road for its entry into electric vehicles.
The maker has also reportedly won orders from a state-owned power station in the Philippines for electric vans, and from the country's largest operator of public minibuses for around 50 units of 21-passenger electric buses. Notable is that the firm is also planning to set up an assembly plant in the country. Teco indicated having developed several special EVs and will explore the Southeast Asian market in the near future.
The firm finished H1 of this year with consolidated revenue of NT$27.774 billion (US$925.8 million), with net profits of NT$2.331 billion (US$77.7 million) and EPS (earnings per share) of NT$1.18. Driven by its increasingly strong performance, its pretax profits and net profits surged 41.33% and 27.53% year-on-year, respectively, to NT$1.47 billion (US$49 million) and NT$2 billion (US$66.67 million) in Q2. (SC)
| Teco's 2014 Revenue by Month | ||
| Month
| Consolidated Revenue
| YoY Growth Rate
|
| Jan.
| NT$4.456 Bn.
| - 6.93%
|
| Feb.
| NT$4.419 Bn.
| 5.13%
|
| Mar.
| NT$5.038 Bn.
| 12.24%
|
| Apr.
| NT$4.519 Bn.
| - 5.23%
|
| May
| NT$4.331 Bn.
| - 11.92%
|
| Jun.
| NT$5.256 Bn.
| 0.39%
|
| Jul.
| NT$4.822 Bn.
| - 3.85%
|
| Aug.
| NT$4.254 Bn.
| - 15.27%
|