Topstar (拓斯达, 300607.SZ), an industrial robot and automation service provider, dropped hints recently that it had been increasing its presence in overseas markets including Mexico.
The Dongguan-based manufacturer responded to investor inquiries on a stock interaction platform on August 24 that the company’s “going global” drive mainly centers on following its clients into overseas markets.
This statement fueled conjecture that Topstar is one of the primary or secondary suppliers of Tesla that chose to set up new operations in Mexico, where the EV giant announced plans to built its fifth gigafactory.
Chinese media reported early this year that Tesla had called upon its Chinese suppliers to follow its move to set up factories in Mexico.
cnrobopedia reported in April that Leaderdrive (绿的谐波, 688017.SH), one of the largest manufacturers of harmonic reducers, agreed to set up a joint venture with Sanhua Group (三花智控, 002050.SZ), a supplier of thermal management systems to Tesla, in Mexico to build and sell harmonic reducers.
‘Very short’ time frame
Since Tesla gave a “very short” time frame for these suppliers to consider and respond to its proposal, many feared they would miss out on “orders to the tune of hundreds of millions of yuan” should they hesitate.
Topstar provides clients with industrial robots, automation equipment, injection molding, CNC machine tool, and a smart energy and environment management system.
Currently, it is exploring business ties with clients in 3C, auto parts and packaging industries in Mexico, Topstar said on August 24.
Early this month, while also interacting online with investors, the firm said it has doubled down on investment in Mexico starting this year, with several “important” projects getting under “in an orderly fashion.”
It will continue to spend big on its Mexican venture.
Topstar reported revenue of 4.98 billion yuan (US$684 million) in 2022, up 51% year on year. Income from abroad amounted to 513 million yuan, down 24% from the same period in 2021 and representing 10.29% of the total, its financial reports show.
Vietnam is Topstar’s biggest overseas market, making up the bulk of its global orders, although the company didn’t disclose the percentage.