With increasing orders and improved production, institutional investors estimate that HIWIN Mikrosystem (hereinafter “HIWIN) is likely to generate more revenue in June than in May. The company’s performance in Q2 is expected to further improve following Q1, hitting its three-year record. HIWIN also has an all-time high stock price since it went public in 2019. Further, the surging demand for semiconductors, PCBs, automation, and Mini LEDs makes institutional investors believe that HIWIN will see another revenue increase in Q3 compared with Q2.

HIWIN Mikrosystem—a leading provider of direct drive technology—is a joint venture founded by HIWIN Technologies Corp; its main products include precision motion control components and customized micro- and nano-positioning systems that are used in semiconductors, panels, and PCBs. Because most of the company’s positioning systems are customized, their sales are less likely to be affected by short-term economic fluctuations. Its component products, which are applied to automation and machine tools, have faster turnover, thereby contributing more to the business’ rapid growth in revenue.

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HIWIN has received orders for both positioning systems and components. Currently, the two products each account for 50% of revenue; orders of positioning systems remain sufficient in the next 12 months, whereas the visibility of component orders can last for a quarter. This year, HIWIN definitely sees an increase in its orders, with the supply being influenced by IC shortages and reduced shipping capacity. Overall, the firm’s performance in 2H21 can surpass that in 1H, where HIWIN will also continue strengthening internal automation to improve productivity, reduce uncertainties over human error, and maintain consistent quality.

Thanks to the flourishing automation industry, HIWIN—in addition to the promising growth in its original production application—managed to become a supplier of leading electric car manufacturers in Europe with its component products, most of which are used in lithium battery equipment. Additionally, its new torque motor is now being used by major machine tool manufacturers in Japan and has gradually entered the Taiwanese market. Despite merely accounting for a one-digit percentage of overall revenue, the machine tool revenue of HIWIN, according to institutional investors, can probably increase its share next year.

The consolidated revenue of HIWIN in the first five months reached NT$1.213 billion (US$43.3 million) with a 19.89% YoY growth. The company’s EPS in Q1 was NT$0.48, which was much higher than NT$0.11 last year in the same period because of increased revenue and gross margin; its historical gross margin ranges between 30% and 40%, mainly depending on product portfolios and sales. (Source: MoneyDJ)