Test Rite Has Order Visibility Till Q1 2023, Optimistic About Full-Year Revenue

The pandemic has impacted the retail business of Test Rite Retail Co. (2908-TW) this year, even though its trading business is growing steadily, and its order visibility has reached the first quarter of next year, according to President Tony Ho.

Speaking at a shareholders’ meeting on Wednesday (June 15), Ho expects that the annual revenue will remain high but warned that the high inventory levels in the U.S. -- higher than in the same period last year -- and the adverse effects of the inflation, make the overall market situation unclear.

Test Rite’s consolidated revenue last year was NT$43.76 billion, up 4.7% year-on-year, another record high, mainly due to the continued growth of the trading business.

Still, the soaring sea freight prices are eating into profits.

Tony Ho pointed out that the order visibility for trade remains good in the second half of the year, meaning that the company will remain prosperous until the end of 2022, with some orders placed in the first quarter next year.
Ho warned, however, that the inventory level of some retailers is high. 

Knowing that some inflationary factors in the U.S. are interfering with the overall market situation, Ho remains cautious as the trade industry continues to expand.

In addition, Tony Ho admitted that the pandemic has dramatically impacted the number of customers in the domestic retail business.

Despite these challenges, the company will still expand its brands TLW (特力屋) and Hola this year and continue to open small community stores of Hola to add new growth momentum to its operations, including Taiwan’s outlying islands.