Sysgration (5309 TT): Impact from China Energy Consumption Restriction

2021-09-28 Tech
Impact from China's energy consumption restriction policy:
  • China has been working on to meet "zero carbon emission by 2060". The recently announced energy consumption restriction is indiscriminate.
  • Sysgration's China factories are located in Guangdong and Jiansu but are not categorized as heavy electricity users. Currently production is on schedule with working-shift adjustments.
  • Sysgration's Taiwan factory is located in Nanto with ongoing automation efforts. Production contribution from Taiwan should be on the rise.
  • Component shortage is a relatively more severe issue for Sysgration. 
  • Janunary-August revenue reached NT$1.53bn, exceeding 2020 full year revenue of NT$1.33bn.