Primax Electronics has expressed optimism about its operations in the third quarter of 2021, citing robust growth of its acoustic components sales.
Specializing in PC input devices and CCM (compact camera modules), Primax has been diversifying its offerings to include not only acoustic components but also products for automotive ADAS, such as camera modules.
Primax saw its gross margin hit a record high of 13.3% in the second quarter of 2021, thanks to a favorable product mix, while net profits surged over 20% both sequentially and on year to NT$611 million (US$21.9 million). EPS for the quarter came to NT$1.37.
Primax expects its third-quarter gross margin to stay flat or grow slightly on quarter, with revenue registering sequential growth. Growth in sales of its acoustics components will outperform that in other product segments.
IC and component shortages may constrain Primax' revenue growth in the third quarter, said the company, adding that it holds 3-4 months of inventory and also has support from its international clients striving for more available chips
Primax is on track to open a new plant in Thailand where employees will be stationed starting November 2021. The Thailand-based plant is expected to contribute about 10% to Primax' total revenue this year, with the proportion set to expand further and reach 30% as its ultimate goal, according to the company.
