Man Yue International Holdings, a Hong Kong-listed maker of energy-storage devices used in electrical circuits, aims to boost market share and profits by becoming the world's second leading manufacturer of polymer-based solid capacitors.
The devices, which are used in products such as personal computers and liquid crystal display monitors, have a selling price six to eight times those of the company's present liquid-based products.
'We want to become one of the top five global electrolytic capacitor suppliers within three years, with about 7 to 8 per cent market share, by selling solid capacitors,' chairman Michael Chan said.
Solid capacitors, which are more stable and durable than liquid counterparts, would account for more than 10 per cent of the company's total sales after three years, Mr Chan said. The rest will be from core business of liquid capacitors.
Japan's Nippon Chemi-Con, which has a 19 per cent share of the global capacitor market, is the only major manufacturer that at present turns out solid capacitors.
Man Yue ranked seventh with a 3.3 per cent overall capacitor market share as of June 2005, trailing larger rivals such as Rubycon, with an 18.64 per cent share and Nichicon with 17.9 per cent, according to researcher Paumanok.
'Our gross profit margin may increase to more than 30 per cent in 2008' after starting the solid capacitor business next year, from 25.8 per cent in the six months ended June, Mr Chan said.