Power-driven Hand Tools Manufacturing

Wang Chung-ching
June 2014
TIER Industry Report - Power-driven Hand Tools Manufacturing;6/6/2014, p1
Industry Profile
Industry Report
• Overview: A turnaround in the global economy, a pick-up in Europe and a steady expansion in China stimulate demand for the products of the industry worldwide in 2014. Therefore, the industry's output and sales values rose 14.97 percent and 13.17 percent year-on-year, respectively in the first three months of 2014. Because of a steady growth in orders from Europe and China and strong domestic demand in Taiwan, the upward trend in both outputand sales values will continue in the second quarter of 2014. • Imports and Exports: To reduce the operating costs, Taiwanese firms withinpower-driven hand tools manufacturing industry have moved production lines to China in recent years and resell the products back to Taiwan, increasing imports. Meanwhile, imports from the Association of South-East Asian Nations have been on therise. Therefore, the industry's value of imports rose by 37.66 percent in the first four months of 2014 and the upward trend is expected to continue in the second quarter of 2014. As for exports, economic recovery and increased car sales in Europe boost orders for the products of the industryplaced with Taiwan. Consequently, the industryexport rose by 19.10 percent in value in thefirst four months of 2014. The upward trend will continue in the second quarter. • Operating Performance: The revenue of De Poan Pneumatic Corporation fell in the first fourth months of 2014 from the same period a year earlier, while Rexon Industrial Corporation Limited and Basso Industry Corporation saw growth, with the revenue of Basso Industry Corporation surging by 30.34percent. On the profit front, the operating income of Basso Industry Corporation soared 209.86 percent in the first three months of 2014, while net profit rose by 34.66 percent. However, Rexon Industrial Corporation Limited and De Poan Pneumatic Corporation operated at a loss. • Industry Dynamics: The revenue of Chinese wind-driven and power tools manufacturinggrew by 8.10 percent year-on-year to RMB23.269 billion in the first three months of 2014. But compared to 2013, it declined by 7.23 percentage points. Large firms became larger and profits of such firms kept rising. Consequently, net profit surged 24.65 percent year-on-year, while Taiwanese firms such as Rexon Industrial Corporation Limited and De Poan Pneumatic Corporation operated at a loss in China. • Industry Outlook: The global upturn and a significant rise in car sales in the US and Europe in 2014 bode well for the industry's sales in Europe and America. At the same time, more and more Chinese customers are shifting to power-driven hand tools from conventional hand tool sector. On the other hand, sales cars and motorcycles will keep rising in the second half of 2014 and increase domestic sales of the power-driven hand tools manufacturing industry. Therefore, the upward trend in the industry's sales will continue and sales would grow by over 10 percent in the second half of 2014 from the same period a year earlier.


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