Taiwan-based industrial PC (IPC) maker Ennoconn expects its sales in 2021 to be driven by new opportunities for its three major businesses - brand operation, system integration and ODM/JDM.
Although orders for the three businesses are still robust, the company remains cautious about possible impacts from component shortages, as it has been able to secure only 60-70% of its components needs, according to Ennoconn chairman Steve Chu.
Ennoconn's brand business is composed mainly of the Germany IPC brands, S&T and Kontron, and contributed 50% of Ennoconn's 2020 revenues with an around 30% gross margin, Chu said.
The system integration business is mainly handled by Marketech International with a revenue contribution of 30% in 2020 and gross margin of around 12%, Chu noted.
Ennoconn as well as its subsidiaries Goldtek Technology and Caswell all belong to the ODM/JDM business and together contributed only 20% of Ennoconn's revenues. With clients reducing orders and its business scale shrinking, the segment only had a gross margin of around 6.3% in 2020, Chu stated .
As governments worldwide have increased their spending in a bid to simulate the economy in 2021, Ennoconn's brand business is expected to land orders for railroad controlling systems and public utilities. Orders for medical care equipment are also expected to continue rising amid the lingering coronavirus pandemic, Chu noted.
With the industrial and communication markets also starting to recover, orders from related companies are expected to rise in 2021, Chu said.
Ennoconn's system integration business will benefit primarily from the semiconductor market's increasing spending on constructing new systems and facilities, Chu noted.
Ennoconn chairman Steve Chu
Photo: Ninelu Tu, Digitimes, March 2021
