Regardless weak Apple orders,

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Concraft-KY (4943-TW) held an earnings results conference today on November 19th. Asmarket concerned thatApple’s (AAPL-US) iPhone XR sales fall short of expectations may lead revenue/earnings growth momentum to drop, in respond, Concraft admitted that end customers dohave adjusted some orders, but it did not cause muchimpacts. The company maintains previous profit guidance in 4Q and its sales is expected to grow QoQ. In addition, catalyzed by automotive components and optics, FY19 sales is expected to increase by 20%.

“We did experience some orders reduction from end-users. However, in terms of the situation in Oct18 and Nov18, it did not cause too much impacts. We maintains revenue growth guidance for 4Q18 at NTD1.8-2.2bn. 4Q18 GM may grow 40-50% and the operating profit margin may grow 30-40%.” said Allan Tai, a spokesperson of Concraft.

“The sales are expected to peak in Oct18 and Nov18 and will fall back in Dec18. Due to trade war and lower demand from end-users, the correction of guidance remains to be seen. The orders for Dec18 and 1Q18are still under negotiations for now.” he added.

As for Concraft’s FY19 outlook, the company holds a positive view toward the automotive components and optical components which are expected to begin mass production. Its automotive revenue in FY19 is expected to double to more than NTD1bn. Its sales in FY19 is expected to grow more than 20% YoY.

Concraft’s 3Q18 revenue was NTD 2.015bn (+37% QoQ, +0.2% YoY). Catalyzed by the automation and the increase of yield rate, GM and profit margin both grow QoQ and YoY at47.93% and 36.76%. However, as tax rate increased YoY, its profit was impacted. Concraft’s 3Q18 net profit was NTD 518mn (+212% QoQ, -2.32%), with EPS of NTD4.4.

Concraft’s 1Q-3Q18 revenue was NTD4.419bn (+34.7% YoY). Its net profit was NTD713mn (+24.4% YoY) with EPS of NTD6.04. Its JAN18-OCT18 accumulated revenue was NTD5.177bn (+25.9% YoY).