Unimicron makes landfall, advances into the Central China market

Unimicron announced the signing of an investment contract with the People's Government of Huangshi City, Hubei Province, mainland China, to develop new-type electronic components and other various types of printed circuit boards or electronics-related products.

In recent years, Unimicron has been laying out an all-round presence in the mainland China market. In addition to production bases in Shenzhen, Guangdong and Suzhou and Kunshan, Jiangsu, a Shandong plant will also start production in the second half of the year, and letters of intent have already been signed in Changshu and Nantong, Jiangsu as well as Jiashan, Zhejiang and Chongqing.

Unimicron announced the signing of an investment contract with the Huangshi People's Government. There is not yet a clear planning schedule, but it is confirmed that the company will return to the Central China region.

Unimicron's 2013 revenue was 59.935 billion yuan, an annual decline of 11%, with a gross margin of 10.9%, an operating margin of 2.6%, after-tax profit of 956 million yuan, and earnings per share of 0.76 yuan. A loss in the fourth quarter of last year ate up the profit performance of the first three quarters, causing Unimicron's full-year earnings per share last year to "go backwards."

Investment consultants believe that Unimicron's operating momentum in the first quarter of this year will remain weak, with first-quarter revenue estimated to decline 9.2% quarter-on-quarter and profit unlikely to escape the shadow of losses. Considering the continued weakness of overall demand, which limits any improvement in Unimicron's profitability, they have downgraded their 2014 profit forecast.