Intai Technology reported a 2.1% year-over-year decrease in revenue for the first seven months of this year, which the company attributes to weakened customer demand. The medical device industry's two largest global players saw a decline in their surgical instrument divisions in the first half of the year, making it challenging for Intai to achieve quarterly growth and overall annual growth.
Recognizing the potential in Japan's expansive senior market, Intai has established a wholly-owned subsidiary in Japan this year, aiming to further expand its business in response to customer needs.
For the first half of the year, Intai's revenue was NT$1.208 billion, a 5.1% year-over-year decrease. The gross margin stood at 39.77%, down by approximately 2.8 percentage points. The company noted that rising costs and pressure from customers to lower prices have impacted profitability. In response, Intai has been optimizing its manufacturing processes to reduce costs and continues to diversify its product portfolio to maintain its gross margin at around 40%.
Operating income was NT$121 million, representing a 49.6% year-over-year decline, with an operating margin of 10.1%. Net income after taxes was NT$145 million, with earnings per share of NT$3.01. For the first seven months, revenue totaled NT$1.415 billion, a 2.1% decline year-over-year.
Intai's three main product categories—medical devices, precision fasteners, and microwave switches—accounted for 77%, 17%, and 6% of total revenue, respectively, with little change compared to the full-year figures for 2023.
Within the medical devices sector, the revenue breakdown is as follows: 41% from minimally invasive surgery, 11% from open surgery, 20% from dental and orthopedic implants, and 28% from other devices (including cardiovascular and breast surgery instruments), maintaining stable performance.
Intai divides its medical device products into six categories. The company expects that products classified under "other" will see modest growth of 0.6%, reaching 29% in 2024. However, looking at the global market, the first half of 2024 has seen a slight decline in surgical medical devices compared to the same period last year, indicating some challenges ahead.
Dental products, which accounted for 8.2% in 2023, are projected to decrease to 7.3% in 2024. Orthopedic and implant products are also expected to decline from 12% to 10.7%. This slowdown is largely due to the post-pandemic return to baseline demand, with growth momentum easing compared to earlier periods.
Looking ahead to the second half of the year, Intai acknowledges that weakened customer demand has led to a decline in performance during the first seven months. With both Medtronic and Johnson & Johnson, the two largest global medical device companies, experiencing declines in their surgical instrument divisions in the first half of the year, Intai’s customers are facing market challenges. While it will be difficult for the company to achieve sequential growth and positive annual revenue growth, it remains committed to striving toward this goal.
In addition, Japan, the world's fourth-largest pharmaceutical market and the country with the highest proportion of elderly people, is a key focus for Intai. The company has established a wholly-owned subsidiary in Japan this year, aiming to deepen its market penetration and provide localized services to meet customer needs, while also expanding future business opportunities.
Resource (mandarin): 鐿鈦今年業績成長面挑戰，瞄準龐大銀髮市場日本設子公司
