On September 26, Glory Times reported that Streamax Technology (002970.SZ) recently stated at an online meeting that the company's Vietnam factory started running in early May 2023, with highly automated SMT patch line, plug-in line, and product assembly line with complete production processes. Essentially, all products required by overseas clients can be completed in Vietnam. Up to now, most products have been transferred to production in Vietnam, and the company is able to provide some products to certain overseas clients. The company plans to provide all products required by overseas clients from its overseas factories in the future. Depending on the growth of overseas business, the company will invest in building a second or even a third overseas intelligent manufacturing center to fully meet the needs of overseas clients.
Regarding the issue of profitability of Vietnam manufacturing, currently the product costs of the Vietnam factory are not significantly different from those of domestic factories. Although labor costs in Vietnam are relatively lower, Vietnam does not yet have a complete local supply chain system. Some materials need to be purchased from China and then shipped to Vietnam, resulting in increased costs for warehousing and transportation. Additionally, as the Vietnam factory is not running at full capacity, the amortization cost of production equipment is relatively high, making the overall production costs almost equivalent to those in China. In the future, once the Vietnam factory operates at full capacity and a complete local supply system is established, the amortization cost of production equipment should decrease. Assuming there are no major adverse changes in labor costs, the manufacturing costs in Vietnam may decrease.
