Opto Tech shares climb
Shares of Opto Tech Corp (光磊科技), a maker of light-emitting diode (LED) components, climbed 2.8 percent on the Taiwan Stock Exchange yesterday, as reports painted a rosy outlook for the company.
Opto Tech, which makes outdoor/indoor LED screens, traffic signaling, intelligent signage and LED lighting, saw its shares close at NT$29.05 (US$0.9) yesterday, after Yuanta Securities Corp (元大證券) gave them a "buy" rating.
Kevin Chang, head of research at Yuanta, wrote in a note yesterday that the firm had a price forecast of NT$37 for the stock, citing Opto Tech's plan to reduce outstanding shares to boost profitability.
Jih Sun Group (日盛集團) also holds a "buy" rating on Opto Tech, with a target price of NT$35.
Opto Tech is on track for profitability this year after closing its money-losing organic LED division last year, Jih Sun said in a recent report.
Whole-year sales are expected to grow 8.4 percent from last year to total NT$7.62 billion, it added.
Aviation fuel surcharges to rise
Aviation authorities will raise fuel surcharges on Taiwanese airliners following a rise in oil prices, officials said yesterday.
From July 16 fuel surges on international flights will rise by US$2.5 to US$17.5 on short-haul flights and by US$6.5 on long-haul flights to US$45.5, the Civil Aeronautics Administration said.
Following the CAA's approval, both China Airlines Ltd (CAL, 中華航空) and EVA Airways Corp (長榮航空) said they would increase fuel surcharges on overseas flights by 17 percent.
CAL has cut its proportion of fuel hedging to 20 percent from 60 percent a year ago, because "volatile" prices have made the cost of the contracts riskier than buying jet kerosene on the spot market, according to the company.
Bootleg rice wine
Taiwan Tobacco and Liquor Corp (TTL, 台灣菸酒公司) yesterday warned the public that rice wine packaged in plastic bottles was not manufactured by TTL.
Rice wine packaged in this manner had not passed stringent quality control measures and consumption of the product might lead to chronic toxicity or other health problems, the firm said in a press release.
The bootleg rice wine could also be identified by its unreasonably low price tag of between NT$20 (US$0.61) and NT$30 per 600ml bottle, TTL said. Rice wine, categorized as a liquor, is taxed at NT$185 per liter.
TTL-manufactured rice wine and cooking wine, also known as salted rice wine, is quality-guaranteed and packaged in glass bottles, TTL added.
FSC raises insurance cap
The Financial Supervisory Commission said yesterday it had decided to raise the cap on insurance deposits to NT$1.5 million (US$45,750) per account, up from NT$1 million previously.
It attributed the decision to the doubling of the average national wage and a 45 percent increase in prices since 1987.
The new measure will take effect retroactively from Sunday, the commission said.
The commission said it planned to make a decision on changes to the premium system for insurance deposits after consultations with foreign banks and other dissenting parties.
Foreign wholesale banks, whose clients can save billions in a single account, are strongly against the new premium system as it will dramatically increase their premium costs.
NT dollar declines
The NT dollar lost ground against its US counterpart yesterday, declining NT$0.023 to close at NT$32.788 on the Taipei Forex Inc.
RSS