AYALA-LED semiconductor firm Integrated Micro-Electronics Inc. (IMI) is targeting double-digit growth in the medical market segment over the next few years, and is setting its sights on expanding into the Chinese market.
IMI chief financial officer Jerome Tan said the company aims to boost the revenue contribution of its medical market segment to double digits from the current 3 to 4 percent.
“We’re expecting the medical market [to grow]by double digits, at least to maintain that share or improve. We’ll be growing that as fast as our company growth… We’re looking at it for a few years,” Tan told reporters after Friday’s listing of 215 million primary common shares sold in a follow on offering.
He said the firm has “started an engagement with a major medical company in China” to jumpstart the expansion in the medical market, aside from its existing contract with another Chinese medical firm.
“We started an engagement with a major medical company in China so that is our initial project attempt, so hopefully with that, we can have initial enhancement in the business,” Tan said.
He also said the company is “on track” to achieve its $1 billion revenue target by 2016, as its compounded annual gross revenue grew by 11 percent in the past four years while its net income and sales have been growing by about threefold on a quarterly basis.
Besides ramping up its medical market business, IMI president Arthur Tan said that the company will also focus on its heavyweight revenue contributors — automotive, telecommunications and industrial.
Tan said the P1.2 billion capital expenditure programmed for next year is mostly allotted for its automotive sector.
As of end-September, the firm’s biggest market is the automotive sector, accounting for 37 percent, and mostly based in Europe and the Philippines; followed by telecom at 18 percent, mostly in China and the Philippines; industrial at 15 percent, also mostly in China and the Philippines; and 12 percent for the high -end consumer devices..
IMI raised P1.6 billion from a public offering of shares on Friday, consisting of 215 million primary common shares priced at P7.50 each.
IMI saw a surge in its nine months net income to $21 million from $5.3 million last year. Revenues also advanced 19 percent to $650.1 million from $547.1 million a year ago.
Earlier, Tan said IMI is targeting to expand its footprint across the China plus One region, India and the Association of Southeast Asian Nations (Asean) as it rationalizes its entrance into new markets in the next few years apart from being present in eight countries to date.
The company currently has a presence in the Philippines, China, Bulgaria, Czech Republic, Mexico, United States, and Singapore.
As of end-September, the Philippines contributes 26 percent to total IMI sales, while 74 percent comes from international operations; specifically 30 percent from China; 37 percent from Europe; and 7 percent from Mexico.
Started in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices. IMI fully owns IMI International (Singapore) Pte. Ltd., IMI USA Inc. and IMI Japan Inc, while it holds an 83.25 percent stake in PSi Technologies Inc.