Japan-based IKKA Holdings (Cayman) will be listed on the Taiwan Stock Exchange (TWSE) in late May 2021, according to company chairman Hu Shiang-chi.
Taiwan-based magnesium alloy casing maker AVY Precision Technology and its affiliates together hold a 69.09% stake in IKKA.
IKKA produces precision plastic automotive components and modules, plastic and mechanical components used in OA (office automation) machines, smart electric toilet seats, home appliances and electric tools, and has set up factories in Japan, China, Vietnam and Malaysia.
In terms of applications, automobiles accounted for 60.92% of IKKA's 2020 consolidated revenues, smart electric toilet seats and home appliances for 19.33%, and electric tools for 6.24%.
Amid automotive components, EPB (electrical park brake) is becoming a main source of business growth for IKKA along with fast growing demand for electric vehicles and development of autonomous driving. EPB penetration of automobiles is widening from high-end car models originally to almost all car models in general, Hu said.
The revenue proportion for EPB was 17% for 2020 and is expected to exceed 20% for 2021. IKKA will invest NT$120 million (US$4.2 million) to expand EPB production capacity at its factory in southern China in 2021 through adding three lines to the existing 19 lines at present, Hu noted. While IKKA has dominated the Japan automobile market for EPB, the company hopes to enter car supply chains in China for the product, Hu indicated.
For IKKA, Japan-based Sumitomo Wiring Systems and Aisin are the two largest clients for automotive components, Japan-based Toto is the largest one for components used in smart electric toilet seats and Germany-based Bosch is so for components used in electric tools.
IKKA posted consolidated revenues of NT$963.5 million, gross margin of 20.07%, operating profit of NT$62.0 million, net profit of NT$52.1 million and net EPS of NT$2.37 for the first quarter of 2021.
IKKA chairman Hu Shiang-chi
Photo: Ninelu Tu, Digitimes, May 2021
