To seize demand in Southeast Asia, Japanese PCB factory Meiko seeks cooperation with Chinese factory ASK

2024/08/07

TechNewsTechnology News
August 07, 2024
Author MoneyDJ

To seize the demand of the Association of Southeast Asian Nations (ASEAN), Japanese printed circuit board (PCB) major Meiko Electronics announced a business cooperation with Chinese PCB manufacturer Aoshicon Technology Co., Ltd. (ASK). Meiko will establish ASK's Singapore subsidiary The company makes the investment.

Meiko issued a press release after the market closed on the 6th, announcing that the board of directors held a resolution that day and would enter into business cooperation with ASK in the PCB business. Meiko said that in order to respond to the increase in demand for ASEAN PCB, the company is expanding its production capacity in Vietnam. However, in order to respond to the increase in demand earlier, it decided to enter into business cooperation with ASK.

Meiko pointed out that the company will invest US$20 million (shareholding limit 14.9%) in "JIARUIAN PTE. LTD.", a Singapore subsidiary that is 100% owned by ASK, to participate in the operation of JIARUIAN's Thai production subsidiary "SUNDELL TECHNOLOGY".

According to Nikkei News, ASK Group's PCB factory in Thailand will be put into operation in 2025, and the automotive PCB parts produced by the factory will be sold by Meiko under its own brand to parts manufacturers that have direct relationships with car manufacturers. Meiko has a total of 5 factories in overseas markets such as China and Vietnam. Among them, the new automotive PCB factory under construction in Vietnam is expected to be put into production in 2025. However, because it cannot keep up with the increase in demand, it decided to utilize the ASK Group's factory.

Meiko announced its financial report for the last quarter (April-June 2024) after the market closed on the 6th: due to the increase in sales of PCBs for automobiles and smartphones, consolidated revenue increased by 13.0% compared with the same period last year to 47 billion yen, and consolidated revenue soared Increased 260.0% to 3.3 billion yen, and consolidated net profit increased 35.0% to 3.1 billion yen.

In terms of product categories, Meiko’s automotive PCB revenue increased by 9.0% to 23 billion yen last quarter compared with the same period last year, and its operating profit increased by 38.5% to 1.8 billion yen; smartphone/tablet PCB revenue increased by 24.5% to 1.8 billion yen. 6.1 billion yen, with operating profit of 800 million yen (profit and loss in the same period last year: 800 million yen); PCB revenue for SSD/IoT modules increased 76.5% to 3 billion yen, with operating profit of 300 million yen (profit and loss in the same period last year) 2 levels); PCB revenue for AI home appliances/game consoles/industrial machines was 5 billion yen, the same level as the same period last year, with revenue soaring 50.0% to 300 million yen; IC substrate revenue soared 300% to 400 million yen , operating loss was 400 million yen (operating loss of 200 million yen in the same period last year); electronic manufacturing services (EMS) business revenue decreased by 8.0% to 8.1 billion yen, and operating profit fell by 25.0% to 300 million yen.

Meiko maintains its financial forecast for this year (April 2024-March 2025) unchanged. Consolidated revenue is expected to increase by 8.7% year-on-year to 195 billion yen, and consolidated operating income will surge by 37.2% to 16 billion yen. Consolidated net income will increase 10.5% year-on-year to 12.5 billion yen.

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