US-based EV orders bolster domestic suppliers

Precision stamping company China Fineblanking Technology (CFTC) reported consolidated revenue of NTD$260 million in March, marking a record-high in the same period.

The supplier has said the growth is largely fueled by increasing demand from U.S.-based electric vehicle (EV) companies and expects orders from European brands to buoy revenue growth month-by-month in the first half of 2022. Heavy pickup truck parts and new products slated for release in the second half of 2022 will contribute to the annual revenue growth, CFTC said.

CFTC's consolidated revenue in March marks an increase of 36.89% from NTD$190 million in February, an increase of 27.06% from NTD$204 million in the same period last year, and a new high for the same period; the cumulative first-quarter consolidated revenue was at NTD$721 million, an annual increase 15.14%, which is also a new high for the same period of the previous year.

The company's auto parts business accounted for NTD$179 million (68.78%) in March, while the hard disk mechanism (VCM Plate) business was at NTD$68 million, accounting for 26.19%. Hard disk (HDD) parts are still being shipped steadily, while prices have been adjusted, with gross profit margin will return to previous years in the long-term.

Looking forward to this year's operation, CFTC pointed out that with the continuous mass production of new products, increasing the explosive growth in the second half of the year, the annual operating outlook is optimistic; among them, the opening of the European plant of the American electric vehicle manufacturer will drive the revenue in the first half of the year to increase month by month. New products such as structural parts and industrial equipment hydraulic pump parts will be mass-produced in the first half of the year, and heavy-duty truck parts with higher unit prices will be mass-produced in July, contributing to revenue in the second half of the year.

CFTC is a global exclusive supplier of high-voltage switch platform parts for major American EV manufacturers and has gradually increased the supply of door lock parts and brake system parts. Aside from shipments to European factories, orders from major American electric vehicle manufacturers will be higher than originally expected.

On the topic of the COVID-19 lockdown restrictions in Shanghai, the company pointed out that the situation there has most certainly impacted logistics in the short term. However, CFTC's Jiaxing and new factories near Shanghai maintain normal production and will ship to Shanghai as soon as possible once the area has reopened.