Chassis specialist Ju Teng upbeats about 3Q20 orders

Chassis maker Ju Teng International expects the prevailing robust demand from the notebook sector to last into the third quarter of 2020, having experienced strong order pull-ins from clients in the second quarter.

As overall notebook chassis supply is falling short of demand and some clients are delaying shipments to the third quarter due to a shortage of crucial components, Ju Teng has seen a further concentration of supply sources for chassis, which in turn has helped ramp up its market share.

With the capacity resumption at its plant in China having started ramping since March, Ju Teng expects its revenues to expand 75% sequentially in the second quarter, with the momentum to stretch into the third quarter, although some ODMs and components are rather more conservative about the third quarter.

Nevertheless, Ju Teng said that it has seen its share in the global plastic notebook chassis market edge up to 33% recently, from 30% on average in 2019, with the ratio likely to continue climbing to 36-37% soon, bolstered by the influx of orders.

Along with rising production utilization rate, the company expects its gross margin to remain high in the second and third quarters and likely to edge down slightly in the fourth before rounding out the year at 18-20% compared to 11% a year earlier.

In addition to continuing to enhance its presence in the metal and plastic notebook chassis market, Ju Teng reportedly has secured verification from European automakers for its automotive metal chassis, with related shipments to kick off in the first half of 2021, according to industry sources.