Highway Holdings Receives Initial Customer Order for New Brushless Electric Motor
Highway Holdings (Nasdaq: HIHO) has received an initial order of 100,000 units for a new model of brushless electric motor from one of its largest strategic customers. The company designed and manufactured this motor specifically for the customer, acting as an Original Design Manufacturer (ODM) rather than an Original Equipment Manufacturer (OEM).
The development of this motor began nearly five years ago but faced significant delays due to COVID-19. Highway Holdings already manufactures synchron and stepping motors for another major customer, and this new brushless electric motor is expected to be a significant addition to their production lines. The company anticipates becoming a leading supplier of this motor type to the customer, with the increased demand expected to boost production volume and contribute significantly to revenue growth in the near future.
Highway Holdings (Nasdaq: HIHO) ha ricevuto un ordine iniziale di 100.000 unità per un nuovo modello di motore elettrico senza spazzole da uno dei suoi più grandi clienti strategici. L'azienda ha progettato e prodotto questo motore specificamente per il cliente, agendo come un Produttore di Design Originale (ODM) invece che come un Produttore di Attrezzature Originali (OEM).
Lo sviluppo di questo motore è iniziato quasi cinque anni fa, ma ha subito significativi ritardi a causa del COVID-19. Highway Holdings produce già motori sinusoidali e motori passo-passo per un altro grande cliente, e si prevede che questo nuovo motore elettrico senza spazzole sarà un'integrazione significativa alle loro linee di produzione. L'azienda prevede di diventare un fornitore leader di questo tipo di motore per il cliente, con un aumento della domanda che dovrebbe spingere il volume di produzione e contribuire in modo significativo alla crescita dei ricavi nel prossimo futuro.
Highway Holdings (Nasdaq: HIHO) ha recibido un pedido inicial de 100,000 unidades para un nuevo modelo de motor eléctrico sin escobillas de uno de sus mayores clientes estratégicos. La compañía diseñó y fabricó este motor específicamente para el cliente, actuando como un Fabricante de Diseño Original (ODM) en lugar de un Fabricante de Equipos Originales (OEM).
El desarrollo de este motor comenzó hace casi cinco años, pero enfrentó importantes retrasos debido al COVID-19. Highway Holdings ya fabrica motores sincrónicos y motores paso a paso para otro importante cliente, y se espera que este nuevo motor eléctrico sin escobillas sea una adición significativa a sus líneas de producción. La empresa anticipa convertirse en un proveedor líder de este tipo de motor para el cliente, con el aumento de la demanda que se espera impulse el volumen de producción y contribuya significativamente al crecimiento de los ingresos en un futuro cercano.
하이웨이 홀딩스(Nasdaq: HIHO)는 주요 전략 고객 중 한 곳으로부터 새로운 모델의 브러시리스 전기 모터에 대해 100,000대의 초기 주문을 받았습니다. 이 회사는 고객을 위해 이 모터를 특별히 설계하고 제조하였으며, 원래 장비 제조업체(OEM)보다는 원본 디자인 제조업체(ODM)로 활동하였습니다.
이 모터 개발은 거의 5년 전 시작되었지만, COVID-19로 인해 상당한 지연을 겪었습니다. 하이웨이 홀딩스는 이미 다른 주요 고객을 위해 동기 및 스텝 모터를 제조하고 있으며, 이 새로운 브러시리스 전기 모터는 그들의 생산 라인에 중요한 추가가 될 것으로 예상됩니다. 회사는 고객에게 이 유형의 모터의 주요 공급자가 될 것으로 예상하며, 증가하는 수요가 생산량을 증가시키고 가까운 미래에 매출 성장을 크게 기여할 것으로 기대하고 있습니다.
Highway Holdings (Nasdaq: HIHO) a reçu une commande initiale de 100 000 unités pour un nouveau modèle de moteur électrique sans balais d'un de ses plus gros clients stratégiques. L'entreprise a conçu et fabriqué ce moteur spécifiquement pour le client, agissant en tant que Fabricant de conception originale (ODM) plutôt qu'en tant que Fabricant d'équipement d'origine (OEM).
Le développement de ce moteur a commencé il y a presque cinq ans, mais a été retardé en raison de COVID-19. Highway Holdings fabrique déjà des moteurs synchrones et des moteurs pas à pas pour un autre grand client, et ce nouveau moteur électrique sans balais devrait être un ajout significatif à ses lignes de production. L'entreprise prévoit de devenir un fournisseur de premier plan de ce type de moteur pour le client, l'augmentation de la demande devant stimuler le volume de production et contribuer de manière significative à la croissance des revenus dans un avenir proche.
Highway Holdings (Nasdaq: HIHO) hat eine erste Bestellung über 100.000 Einheiten für ein neues Modell eines bürstenlosen Elektromotors von einem seiner größten strategischen Kunden erhalten. Das Unternehmen hat diesen Motor speziell für den Kunden entworfen und hergestellt und fungiert als Original-Design-Hersteller (ODM) anstelle eines Originalgeräteherstellers (OEM).
Die Entwicklung dieses Motors begann vor fast fünf Jahren, erlitt jedoch erhebliche Verzögerungen aufgrund von COVID-19. Highway Holdings stellt bereits Synchron- und Schrittmotoren für einen anderen großen Kunden her, und es wird erwartet, dass dieser neue bürstenlose Elektromotor eine signifikante Ergänzung ihrer Produktionslinien darstellt. Das Unternehmen plant, ein führender Anbieter dieses Motortyps für den Kunden zu werden, wobei die steigende Nachfrage voraussichtlich das Produktionsvolumen steigern und erheblich zum Umsatzwachstum in naher Zukunft beitragen wird.
- Received initial order of 100,000 units for new brushless electric motor
- Acted as Original Design Manufacturer (ODM) for strategic customer
- Expected to become a leading supplier of this motor type
- Anticipated boost in production volume
- Projected significant contribution to revenue growth
- Development faced significant delays due to COVID-19, extending over three years
The initial order of 100,000 units for a new brushless electric motor represents a significant milestone for Highway Holdings. As an ODM project, this demonstrates the company's enhanced capabilities in design and manufacturing, potentially leading to higher profit margins compared to OEM work. The five-year development cycle, while extended due to COVID-19, showcases the company's commitment to long-term strategic partnerships.
This order could be a catalyst for revenue growth, especially if it leads to Highway Holdings becoming a leading supplier for this motor type. However, investors should monitor the ramp-up of the new production line and its impact on short-term costs. The diversification into brushless motors, alongside existing synchron and stepping motor production, strengthens the company's market position in the electric motor industry.
The transition from OEM to ODM for this new brushless electric motor is a significant leap for Highway Holdings. It demonstrates the company's increased technical capabilities and potential for higher value-added services. The custom design for a major strategic customer suggests a deepening relationship that could lead to more stable, long-term revenue streams.
The production line setup will be crucial. Investors should watch for updates on efficiency, yield rates and any potential teething problems. If Highway Holdings can successfully scale up production while maintaining quality, it could position itself as a key player in the brushless motor market. This move aligns with the trend towards more efficient, compact electric motors across various industries.
The brushless electric motor market is experiencing robust growth, driven by increasing demand in sectors like automotive, industrial automation and consumer electronics. Highway Holdings' entry with a custom-designed product for a major customer is well-timed. The initial order of 100,000 units suggests strong confidence from the customer in the product's quality and market potential.
However, the five-year development cycle, extended by COVID-19, highlights the challenges in bringing new products to market. Investors should consider both the potential for significant revenue growth and the risks associated with long development timelines in a rapidly evolving tech landscape. The success of this product could open doors to new customers and markets, potentially diversifying Highway Holdings' revenue streams and reducing dependency on existing product lines.
HONG KONG , Sept. 4, 2024 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today announced the Company received an initial order of 100,000 units for a new model of brushless electric motor from one of its largest strategic customers. The new motor was designed and manufactured by the Company specifically for such customer, with the Company serving as the Original Design Manufacturer ("ODM"), rather than as an Original Equipment Manufacturer ("OEM").
Roland Kohl, chairman, president and chief executive officer of Highway Holdings, commented, "We are very pleased to finally get this order. The development began nearly five years ago under an ODM project instead of an OEM one. However, the original schedule faced significant delays, extending over three years, due to the impact of COVID-19 and its aftermath."
"We currently manufacture synchron and stepping motors for another major customer, and our new model brushless electric motor is a significant addition to our existing production lines. As soon as our new production line gears up and is fully operational, we anticipate becoming a leading supplier of this motor type to the customer we designed the motor for. The increased demand for this new model is expected to significantly boost our production volume and serve as a major contributor to our revenue growth in the near future."
About Highway Holdings Limited
Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon,
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.
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SOURCE Highway Holdings Limited
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