cens logo

Taiwanese Machine Tool Exhibitors at CIMT in Beijing Upbeat About Landing Ample Orders from Mainland Firms

Apr 29, 2015 | By Ken Liu

Compiled By KEN LIU

China's buoyant manufacturing industry to drive Taiwan's machine-tool industry. China's buoyant manufacturing industry to drive Taiwan's machine-tool industry.

Taiwanese exhibitors at the 14th China International Machine Tool Show (CIMT), held Apr. 20-25, 2015 at China International Exhibition Center in Beijing, were generally upbeat about prospects to land ample orders from mainland Chinese manufacturers this year in light of the mainland's improved purchasing managers' index (PMI).

China's official PMI, widely regarded the indicator of level of activity at large industrial firms, rose to 50.1 in March from February's 49.9, a touch above the 50-mark that separates growth from contraction.

Taiwan External Trade Development Council (TAITRA), the semi-official trade promoter backed by the Taiwan government, predicts Chinese manufacturers to remain the world's biggest buyers of Taiwan's machine tools this year at the show.

Industry executives project buoyant manufacturing industry in the mainland and America to drive Taiwan's machine-tool industry into a cyclical expansion stage of business this year, to make Taiwan's manufacturers involved in machine-tool technology a focus for stock investors.

Among Taiwan's heavyweight exhibitors at this year's show were Hiwin Technologies Corp., Goodway Machine Co., Ltd., Awea Mechantronic Co., Ltd., Tongtai Machine & Tool Co., Ltd., Shieh Yih Machinery Industry Co., Ltd., Falcon Machine Tools Co., Ltd., Taiwan Takisawa Technology Co., Ltd., Delta Electronic Inc., Advantech Co., Ltd., and Nexcom International Co., Ltd.

Industry executives predict this year Hiwin to mostly rely on its ball screws for machine tools used by carmakers, bearings and heavy-duty bearings to drive revenue growth.

The company's ball-screw production lines are running at full capacity to fill booked orders, which will keep the company's lines humming at least throughout this June.

The company's heavy-duty bearing designed for minimal 20-kilogram workload adopts some unconventional technology to possess an edge over typical counterparts to drive up the company's bearing sales this year, industry executives say.

Foreign institutional investors forecast the company's after-tax net income for this year to exceed the NT$10 milestone to NT$11.54 per share based on the company's better-than-expected revenue for the first quarter, and the optimistic forecast of a 15-18 percent sequential growth in the second quarter.

In the first quarter, the company, reportedly the world's No.2 maker of ball screws and linear guide ways for precision machinery, had consolidated revenue of NT$3.63 billion (US$117.29 million), surging 20.7 percent year on year to hit seven-year high. Industry executives forecast the company's revenue for 2015 to cross the NT$15.8 billion (US$509.67 million) it set in 2011.

Hiwin Chairman Eric Chuo says the company is receiving ample orders for linear guideways and ball screws and has begun delivering industrial and healthcare robots, forecasting the company's revenue for the second quarter to outperform its first-quarter level.

Hiwin has taken over Luren Precision Co., Ltd., a leading Taiwanese maker of gear cutting tools, spin pumps and machinery, to strengthen its robot manufacturing capacity.

Goodway, recognized as Taiwan's No.1 maker of computer numerical control (CNC) lathes, depends on China for a quarter of its consolidated revenue. The company projects its consolidated revenue for this year to hit the NT$10 billion (US$322.58 million) milestone partly driven by sustained growth in China's demand for cars and motorbikes, with mainland Chinese manufacturers therefore having to increase orders for Goodway's lathes.

To date, Goodway still has NT$600 million (US$19.35 million) of undelivered orders while its subsidiary, Awea, still has NT$1.7 billion (US$54.83 million) of backlogged orders, all of which will keep the two companies' production lines busy throughout the end of the third quarter.

To keep up with such brisk order volume, Goodway is boosting production capacity at its manufacturing sites on both Taiwan and the mainland.

In the first quarter, Goodway reported consolidated revenue of NT$1.81 billion (US$58.45 million), up around 11.6 percent from NT$1.62 billion (US$52.38 million) posted in the same quarter of last year. Industry executives predict the company's after-tax net income at NT$1.3-1.5 per share for the first quarter, hitting another high in company history, with its 2014 per-share figure being NT$6.88 per share.

Yuanta Financial Holdings Co., Ltd. has raised its target price of Goodway shares to NT$93 (US$3) for 2015.

Falcon generated consolidated revenue of NT$315 million (US$10.16 million) in March, spiking 50 percent year on year, which helped swell the company's revenue to NT$609 million (US$19.64 million) throughout the first quarter, increasing around 9.3 percent from NT$557 million (US$17.96 million) achieved a year ago.

Industry executives predict the company to swing to profit of around NT$0.1 per share in after-tax net income in the first quarter from loss.

This year, Tongtai mostly exhibited machines for processing aircraft and automotive components at the Beijing trade show. Industry executives predict the company's consolidated revenue for this year to rise at least 20 percent year on year to top NT$10 billion (US$322.58 million), partly due to several new products it recently rolled out and revenue contributed by the French machine-tool maker PCI-SCEMM it recently acquired.

Shieh Yih expects steady orders at least throughout the third quarter after a spike seen in the second quarter. The company unveiled a new factory in Kunshan, China last year to target taking a bigger slice of China's market for machines used in aircraft and automotive industries.

Industry executives project the company's revenue from Chinese operations to rise 50 percent year on year in 2015.

Shieh Yih is pursuing the goal to be a globally top-5 press brand in three to five years by trying to increase revenue at double-digit rate a year.

CNC-system maker Advantech demonstrated its latest ADAM line at the Beijing show.

Although the company says it is likely to attain the goal of increasing revenue by 16 percent year on year this year, industry executives are uncertain if such goal would be derailed by growing reluctance among customers in developing economies to place orders, the slowing recovery of the economy stateside, and the hazy outlook of mainland Chinese and European economies, as well as potentially disastrous outcome from a "Grexit."

Advantech is predicted by industry executives to make NT$5.43 billion (US$175.41 million), or NT$8.63 per share, this year and NT$6.10 billion (US$196.80 million), or NT$9.68 per share, next year, each rising 10.8 percent and 12.1 percent year on year.

Nexcom exhibited control systems that connect to the Internet to be an Internet of Things (IOT) solution for CNC machines and automated factories.

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...