Ta Ya's Subsidiary - Ta Er Innovation - Strives to Profit the Next Year Coverage by Shen Meixing, Commercial Times

2013/02/23

Ta Ya Group (1609) Chairman Shen Shanghong announced yesterday that the company will be spending at least NT$300 million of capital expenditure this year on equipment renewals and new investments, hoping that economic outlook may turn favorable in the second half. This NT$300-million spending is equivalent to the amount spent in the previous year. Apart from the cable business, Ta Ya will also escalate its involvement in the service industry and brand management. Ta Er Innovation, one of Ta Ya's subsidiaries, plans to launch its "INNEREXILE" brand to international markets over the next 3~5 years, and expects to profit in the next year.

Shen Shang-Hungsaid that performance of the cable industry was underwhelming towards the end of the previous year, and no sign of improvement was seen in the first quarter of this year. He hoped for the economic outlook to turn favorable in the second half of the year. Towards the end of the previous year, Ta Ya submitted a tender to the Bureau of Energy, Ministry of Economic Affairs, for the construction of offshore wind farm. Although the tender was won by Swancor and Taiwan Generations, Ta Ya will continue its green energy investments and may even join other companies in their offshore wind power farm projects. However, Ta Ya expects to develop a clear direction for its green energy investments sometime in the second half.

Ta Ya's investment in Ta Er Innovation provides the company with B2C exposure in addition to its existing B2B model. Apart from the cable business, Ta Ya will also involve itself in design and branding in the future.

大Ta Er Innovation announced a series of metallic and plastic iPhone 5 covers yesterday under the brand name "innerexile." The products will be sold in more than 10 foreign countries including Japan, Singapore, Thailand, China, Philippines, Malaysia, Ukraine, Sparin and South Africa. In Taiwan, the products will be distributed through Studio A.

Kuan Heng-Chun, President of Studio A, said that Studio A began a trial sale of INNEREXILE metal covers during the Chinese New Year period, and the market has responded quite favorably. A manager of Ta Er Innovation revealed that it was the company's plan to launch protective covers for iPhone 5 first, and will follow up with protective sleeves for iPad Mini and iPad, and a new power bank sometime in April. Ta Er expects to break even with NT$30 million to NT$50 million of revenue this year, and begin making profits when revenues increase to the NT$50 million ~ NT$100 million range the following year.