Pe­ga­tron con­fi­dent about H2 per­for­mance

The China Post - - LOCAL - BY STEPHANIE CHAO

Pe­ga­tron ( ) Chair­man T.H. Tung ( ) said he will re­main con­fi­dent about the com­pany’s per­for­mance in the com­ing months, and de­nied the com­pany will fol­low in oth­ers foot­steps by point­ing out that Pe­ga­tron al­ready has an ad­e­quate dis­tri­bu­tion world­wide, dur­ing its share­hold­ers meet­ing.

In re­sponse to spec­u­la­tion of Hon Hai ( ) re-en­ter­ing the In­dian mar­ket, Tung spoke of Pe­ga­tron’s fu­ture, say­ing that the com­pany has of­fices and fac­to­ries based in coun­tries such as Mex­ico and the Czech Repub­lic, and re­pair­ing bases in Ja­pan. “Pe­ga­tron will not set up a base in other lo­ca­tions just be­cause ri­val­ing com­pa­nies are head­ing there,” Tung said.

Ac­cord­ing to the in­for­ma­tion and statis­tics Tung pro­vided, Pe­ga­tron fac­to­ries are of a con­sid­er­able scale in Mex­ico and the Czech Repub­lic. Cur­rently, there are also 700 to 800 work­ers at the re­pair bases in Ja­pan, at which the worker num­bers have grown con­sid­er­ably since its hum­ble be­gin­nings with around 100 em­ploy­ees.

The chair­man also ad­dressed con­cerns re­gard­ing China’s “red sup­ply chain” ( ), and main­tained an un­ruf­fled at­ti­tude to­ward the is­sue, say­ing that in the IT in­dus­try, “com­pe­ti­tion is al­ready on a global scale and ever present.”

”If other busi­nesses are per­form­ing bet­ter, then the com­pany should strive to ad­vance, and ul­ti­mately let the con­sumers de­cide the win­ner,” Tung said, fur­ther shar­ing his be­lief that other coun­tries do not have more ad­van­ta­geous poli­cies im­ple­mented.

The chair­man ex­plained

that while the coun­try can pro­vide much needed coun­sel­ing for com­pa­nies, it is up to the busi­nesses to fig­ure out and cul­ti­vate their own ad­van­tages.

An in­dus­try that does not rely too much on help or guid­ance can per­form bet­ter in the long-run, Tung said.

Op­ti­mistic for H2: Tung

Tung also ex­pressed op­ti­mism for the sec­ond-half of the year, as the busy sea­son is ap­proach­ing. Fac­to­ries in China were also in­creas­ing re­cruit­ment ef­forts, he said.

The chair­man backed up

his op­ti­mistic fore­cast by cit­ing peak pe­ri­ods such as the back-to-school sea­son with its high tech­nol­ogy prod­uct sales, end- of- the year sales, and big- named clients’ launch­ing of new prod­ucts.

IoT, Wear­ables and More

Dur­ing t he share­hold­ers’ con­fer­ence, Tung con­firmed Pe­ga­tron’s div­i­dend of NT$4.1 per share, and that Pe­ga­tron also saw a good per­for­mance last year, with con­sol­i­dated rev­enue at NT1.0197 tril­lion, an an­nual in­crease of 7.4 per­cent, and gross mar­gin at 5.8 per­cent.

Tung also de­liv­ered pos­i­tive news on suc­cess­fully en­ter­ing the wear­able and au­to­mo­tive elec­tron­ics in­dus­tries, and will con­tinue to bring in new devel­op­ment op­por­tu­ni­ties in the fu­ture.

Pe­ga­tron’s foray into the two in­dus­tries will con­tinue this year, con­cen­trat­ing on three main prod­ucts: in­for­ma­tion tech­nol­ogy, com­mu­ni­ca­tion and con­sumer elec­tronic prod­ucts.

Tung be­lieves they will also con­tinue mak­ing new ad­vance­ments in the In­ter­net of Things (IoT,

), wear­able de­vices and au­to­mo­tive elec­tron­ics.

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