Footwear contract manufacturer Chung Chieh-KY posted modest profit growth in the second quarter, but the company's outlook for this year is conservative — a mixed picture for investors.

• Second-quarter operating profit rose about 5% year on year, with after-tax earnings of NT$0.3 per share.
• Revenue grew 8.4% year on year, with athletic shoes the mainstay at 70% of the total.
• Gross margin recovered on higher capacity utilisation and an adjusted product mix.
• Consumer demand remains weak and customers are placing orders cautiously; the company has also lowered its own outlook.
• Capacity continues to expand across Vietnam, India and Indonesia, with a new plant in East Java, Indonesia, the focus for this year.

Outlook: amid the restructuring of global supply chains, the spread of four production bases offers a chance to win new customers, but near-term earnings remain weighed down by soft consumer demand.