Cao Yongxiang, Chief Financial Officer of AirTAC, said that although the high inflation factor has affected customers' willingness to invest, the unfavorable factors have faded. After the Spring Festival this year, the recovery has been obvious, and the performance in the first quarter can grow compared with the same period last year.

(Photo by reporter Lin Jinghua)

[Reporter Lin Jinghua/Taipei Report] AirTAC-KY (1590) participated in the financial business briefing of the stock exchange this afternoon (28th). Cao Yongxiang, chief financial officer of AirTAC, said that although high inflation factors affect customers' willingness to invest, but The unfavorable factors have faded, and the recovery after the Spring Festival this year has been obvious. The performance in the first quarter has grown compared to the same period last year. AirTAC also estimates that the utilization rate of pneumatic components has reached nearly 110%, and the production capacity of new line rails continues to expand. This year’s operation is positive. , the estimated performance of the legal person is expected to grow by double digits.

According to Cao Yongxiang’s analysis, China’s labor costs are rising, but the population is declining. Customers are worried about the lack of workers and turn to automation, which drives the demand for pneumatic components. However, the pneumatic component industry has declined in the past two years. Cao Yongxiang said, “It is rare to see two consecutive years of decline. "In addition, after China unblocked at the end of last year, there were obvious signs of recovery. It is estimated that pneumatic components will enter an upward cycle this year, and the cycle will be longer than the previous 18-24 months.

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The utilization rate of Yade’s pneumatic components has approached 110% in March. Cao Yongxiang explained that until June and July, the utilization rate of pneumatic components can be maintained at about 110%.

In addition, AirTAC invested in the development of linear slide rails about 3 years ago, and the production progress was slower than expected. However, Cao Yongxiang revealed that the sales strategy has changed. Rail sales are about 180 million yuan, which can grow several times throughout the year.

The annual output value of AirTAC's line rail has also increased from 1 billion yuan to 2 billion yuan, and the annual utilization rate can be maintained at around 60-70%.

As for the capital expenditure part, the peak is about NT$5 billion in 2017 and 2018. Cao Yongxiang explained that last year, because the plan for this year was brought forward, there was also a scale of NT$5 billion. This year's capital expenditure is expected to return to the level of more than NT$2 billion.

In terms of dividend distribution, Cao Yongxiang said that in the past, it was maintained at 50%. In 2018, due to the retention of cash due to the US-China trade war, the dividend rate dropped to 41%. This year, it is expected to return to 45%. to the 50% level.

Regarding the overall operating outlook, AirTAC may grow stronger than the overall pneumatic components industry, AirTAC predicts.

The performance in the first quarter will not decline. In the second and third quarters, due to the low base period last year, it can also maintain growth. According to the legal person and estimation, AirTAC's performance can have double-digit growth throughout the year.

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