Demand for faster broadband service and last-mile connectivity will enable Delta Networks, a newly listed contract manufacturer of communications equipment, to achieve double-digit sales growth over the next few years, a company executive said.
Chairman and chief executive Sam Liang said Delta also would seek expansion through mergers and acquisitions following the company's debut on the Hong Kong stock market last Friday. Delta raised HK$1.4 billion from the initial public offering.
The company, a 60 per cent subsidiary of Taiwan-listed power supply equipment vendor Delta Electronics, produces broadband ethernet switches and wireless internet routers. It recorded a net profit of US$25.5 million from revenue of US$357 million for the year ended December last year.
For want of its own brand, Mr Liang said the company 'banks on design and technology capability' to compete with peers such as D-Link Corp and Accton in Taiwan's broadband equipment sector.
'By introducing products to keep pace with new technology, we can uphold our profit margin despite fierce competition,' he said.
Gross profit margin rose to 16 per cent last year up from 15.5 per cent in 2005. It forecast sales of US$400 million by the end of the year.
