In the manufacturing and service industries, the semiconductor and telecommunications sectors reported the strongest profitability last year, according to a report released by the Taipei-based China Credit Information Service (
The report collected the financial statements of 2,626 companies in these two industries -- including 1,244 companies whose shares are traded in open markets as well as the remaining 1,382 businesses whose stocks are not publicly traded -- in an effort to analyze their financial performances and efficiency.
Five components -- gross margin, operating profit margin, net profit margin, return on equity (ROE) and revenue growth from the previous year -- were calculated for the final evaluation.
Deemed as a cash cow, the semiconductor sector last year recorded the strongest operating profit margin of 21.2 percent and a net profit margin of 21.7 percent in the manufacturing industry.
In the service industry, the regulated telecommunications sector reported the strongest operating profit margin at 29 percent and a net profit margin of 28.5 percent.
Chang Chien-yi (張建一), deputy director of research division II at the Taiwan Institute of Economic Research (台經院), said that Taiwan has a strong competitive edge, especially in the high-tech industry, but needs to strengthen investors' sagging confidence.