Thai Ming Focuses on Exchange Rates in Second Half, Maintains High Gross Margin Sales Strategy

With U.S. tariffs finalized, Thai Ming (9927), Taiwan’s leading lead ingot producer whose main market is Southeast Asia, will not be directly affected as it does not export to the U.S. However, with an EPS of NT$1.26 in the first half of the year and a foreign exchange loss of over NT$200 million in Q2, Thai Ming will focus on the TWD/USD exchange rate trend in the second half while maintaining a sales strategy prioritizing high gross margin products to sustain strong operating profits.

At a forum hosted by Taishin Securities on the 18th, Thai Ming’s spokesperson Tong Xin-Yuan noted that in 2024, the U.S. imported 149 million lead-acid batteries, mainly from Mexico, Vietnam, South Korea, China, and Malaysia, accounting for 87% of total imports. Taiwan is not a major exporter, indicating minimal exports of lead-acid batteries to the U.S.

Tong stated that Thai Ming primarily supplies raw materials such as lead ingots and lead alloys to downstream lead-acid battery manufacturers. While China is a major lead ingot producer, Thai Ming is not concerned about Chinese manufacturers dumping lead ingots in Southeast Asia, as domestic prices in China are typically around $200/ton higher than LME prices.

Tong pointed out that Thai Ming conducts sales and purchases in USD, but due to timing differences between income and expenses, sharp TWD appreciation can lead to unhedged forex losses, such as the NT$200+ million loss in Q2.

He noted that global lead ingot supply and demand remain stable. However, according to ILZSG forecasts, global supply in 2025 will reach 13.27 million tons, exceeding demand (13.19 million tons) by about 80,000 tons due to U.S. reciprocal tariffs, USD funding costs, and automotive industry downturns.

Tong added that ILZSG data shows primary lead (mined) accounted for 39.4% of global supply in 2016 but dropped to 33.6% in 2023, while recycled lead rose from 60.6% to 66.4% in the same period. This trend helps stabilize lead prices, mitigates geopolitical risks, and supports environmental sustainability.