Tong Hsing Electronic Industries expects its sales in the third quarter of 2013 to grow at the same pace or higher than the 8% it posted in the previous quarter, powered by ever growing demand for LED substrates and CMOS image sensors, according to company president Heniz Ru.
Tong Hsing posted net profits of NT$331 million (US$11.07 million) on revenues of NT$1.91 billion in the second quarter. Gross margin for the second quarter stood at 30.3%.
Although shipments of LED substrates were affected by the roll-out of low-price LED products in the first half of 2013, Tong Hsing will see its LED substrate shipments resume momentum in the second half, Ru said.
Demand for Tong Hsing's turnkey CMOS image sensor packaging services is set for continual growth in the second half thanks to growing popularity of CMOS image sensors in entry-level and mid-range smartphones and tablets, Ru added.
Capex budget for 2013 will reach NT$1.25-1.51 billion, equaling the amount the company spent in 2011-2012, Ru indicated. More capital will be used for capacity ramps in the second half of 2013 as capital spending reached only NT$458 million in the first half.