Copper foil maker Co-Tech 1Q17 revenues expected to rise

Co-Tech Copper Foil is expected to post sequential revenue growth in the first quarter of 2017, as supply of copper foil is tight, according to industry sources.

The supply of copper foil has already fallen short of demand due mainly to brisk demand coming from the car electronics sector, said the sources. The continued shortage of copper foil is expected to buoy further Co-Tech's sales and profit performance in 2017, the sources indicated.

Co-Tech returned to profitability in 2016, with EPS reaching NT$3.05 (US$0.10). The company reported revenues increased 26.5% on year to NT$5.4 billion in 2016, while gross margin surged to 18.57% from 3.65% in 2015.

Co-Tech posted revenues of NT$593 million in January 2017, up 62.2% on year and about 8% on month.

Co-Tech generated net profits of NT$291 million in the fourth quarter of 2016, up about 58% on quarter and hitting a record high. EPS for the quarter came to NT$1.38. The company announced revenues increased 10.7% sequentially and 41.9% on year to NT$1.58 billion in the fourth quarter of 2016, while gross margin climbed 6.8pp on quarter and 17.9pp from a year earlier to 26.16%.