Topco sees silicone demand pick up

Topco sees silicone demand pick up

Topco sees silicone demand pick up

Julian Ho, Taipei; Adam Hwang, DIGITIMES

Wednesday 5 August 2020

Topco Technologies, which distributes and sells silicone materials for Japan's Shin-Etsu, has seen orders pick up with strong order pull-ins to persist throughout second-half 2020.

Topco said it has shifted the focus of such products to production of medical devices and materials, notebooks and servers for which demand has sharply increased due to the coronavirus pandemic.

Since the outbreak, demand for silicone products used in production of textile, shoes, cosmetic and sports goods has significantly shrunk, Topco said, but demand from 5G smartphones, cables and heat-dissipation materials has increased.

To cope with the pandemic, Topco said it will sell new products and develop new clients, focusing on manufacturers of consumer electronics, medical products, automotive components, sports/leisure goods and cosmetics.

Topco has been tapping the Southeast Asia market and has set up bases in Jakarta, Ho Chi Minh City and Hanoi.

Topco posted consolidated revenues of NT$1.885 billion (US$63.9 million), gross margin of 16.49%, operating profit of NT$118.3 million, net profit of NT$94.8 million and net EPS of NT$1.28 for second-quarter 2020, leading to consolidated revenues of NT$3.646 billion, gross margin of 16.81%, operating profit of NT$225.9 million, net profit of NT$179.0 million and net EPS of NT$2.42 for first-half 2020.