Finetex EnE’s nano-division sales growth during 2Q 2017 remain solid
Finetex ㅣ 2017-08-16 ㅣ 6516
Finetex EnE, Inc.’s nano-division sales during 2Q 2017 has shown solid growth in both QoQ and YoY basis. According to the company’s 1H 2017 earnings report released on 14 August, total sales was approximately $15.5m which is 30% increase vs. Q1 2017 and 46% increase vs. 2Q 2016. Finetex EnE’s nano-division, the company’s core business, sales growth was an increase of 44% from Q1 2017 and 149% from Q2 2016.
Two factors have principally attributed to Finetex EnE’s such solid sales growth in its nano-division: 1) forthcoming global application of the ISO 16890 in the industrial filter has led the company’s global clients to pre-emptively move to increase application of nano-filters, 2) Finetex EnE’s business with Nike has started to contribute to the firm’s revenue more meaningfully during 2Q 2017.
Operating profits, on the other hand, had remained unexciting when compared to its sales growth. This was mainly attributed to the company’s one-off item related to the company’s account receivable that amounted to $1.25m which was written-off during 1H 2017. However, a company official stated that much of this provision is expected to be reversed during the next quarter.
The ISO 16890 rule is expected to be implemented in the US industrial filtration industries from 2018; this effectively means electrostatic should be ruled out in the process of manufacturing industrial filters. This new rule has substantial effect of Finetex EnE’s forthcoming sales and earnings figures as nano-filters would become a major substitute for industrial filter manufacturing process. The company official cited that growth in the demand for nanofiber applied filters would remain solid for coming years.
Finetex EnE has already shipped its orders to Nike’s targeted sales for its 2017 Fall, Winter and Holiday seasons. Finetex EnE also has managed to receive orders for Nike’s targeted sales for 2018 Spring and Summer seasons as well. These orders are principally aimed for Nike’s sports marketing related products. Finetex EnE expects to receive additional orders for Nike’s main product lines aimed for 2018 Fall season. Finetex EnE expects steady and stronger growth in orders from Nike during 2018.
Furthermore, the company’s factory in the Philippines is currently progressing with major capex to facilitate such expected increase in demand and new addition of lines are expected to complete by the end of August 2017. Finetex EnE is also expected to introduce its face masks in many local retail channels and stores that include CVs, Supermarkets and Discount Stores. Thus, the company expects its B2C business division to show consistent growths in the upcoming quaters.
Lastly, the JV company with Yili is expected to be in full operation by Q4 2017. This is expected to add new sales related to automobile filters in China. Finetex EnE expects that its businesses have started to bottomed out and solid growth both sales and profits would be likely in the upcoming years.
ⓒ Media Edaily, All rights reserved.