TAIPEI: Taiwan Paiho Ltd, which supplies shoelaces and elastic tape, saw sales increase 8.2 percent annually to NT$753 million (USD$24.04 million) last month, driven by demand for elastic items related to virtual reality (VR) equipment.
In the first seven months of the year, combined sales totaled NT$5.95 billion, an increase of 13.82 percent year-on-year, the sports goods and apparel accessories maker said on Wednesday.
Paiho provides wearable components for VR headsets, such as elastic jacquards and molded hooks, to companies including HTC Corp. Revenue from VR-related products reaching NT$50 million last month, the company said.
Four-way stretchable elastics and two-sided embroidery for sports shoes are also among Taiwan Paiho’s key products this year, due to rising demand from its main client, Adidas AG.
Daiwa Capital Markets Inc said that new VR products and Adidas orders might boost the company’s sales further in the second half. Paiho plans to increase the number of its elastic making machines to 122 by the end of this year from last year’s 32.
The company has earmarked spend more than NT$140 million capacity expansion for projects this year, including building new factories in Southeast Asia.
A new plant in Indonesia is to start operations next quarter, offering products for sports shoes, the company said. In the first half of the year, Paiho reported an annual increase of 39.9 percent in net profit to NT$745 million, with earnings per share of NT$2.5.
The company’s consolidated sales were NT$5.2 billion in the first six months of the year, up 14.7 percent annually.
In related news, Feng Tay Enterprises Co a local supplier of footwear, on Tuesday reported sales of NT$4.62 billion for last month, up 8.8 percent from the same period last year, with the company attributing the growth to higher-than-expected orders ahead of the Olympics in Rio de Janeiro, Brazil.
From January to last month, Feng Tay’s cumulative sales increased 12.5 percent year-on-year to NT$34.28 billion, company data showed.
