China Steel Corp (中鋼) posted a pretax profit for the third straight month last month, but the nation’s largest integrated steel maker faces continued headwinds this quarter and next quarter, because of global economic uncertainty and an industry-wide glut triggered by increased Chinese exports, analysts said.
“The ongoing debt problem in Europe has dampened market visibility on demand and caused customers to be conservative this year,” Grand Cathay Investment Services Corp (大華投顧) analyst Tsai Yen-ling (蔡燕鈴) said in a note yesterday.
Tsai’s remark came after the Greater Kaohsiung-based company on Tuesday reported a pretax profit of NT$1.056 billion (US$35.3 million) for last month, which was 49.15 percent higher than the previous month.
On an annual basis, last month’s pretax profit plunged 68.08 percent from the same month of last year, the company said in a statement.
Revenue for last month increased by 3.24 percent to NT$20.091 billion from the previous month, down 5.18 percent from a year earlier, it said.
Tsai maintained her profit forecast for China Steel for this year, expecting net income of NT$12.1 billion, or earnings per share of NT$0.81, down 37.7 percent year-on-year, on revenue of NT$229.1 billion, down 4.7 percent from last year, according to the note.
While lower prices of raw materials such as iron ore have helped China Steel post a pretax profit of NT$786 million in the first five months of the year, the numbers were nearly halved from the NT$14.384 billion China Steel reported in the same period of last year, reflecting still-weak market sentiment so far this year.
“The spot steel prices dropped by US$20 to US$30 per tonne recently in the East Asian market because of increased Chinese steel shipments,” IBTS Investment Consulting Co (台灣工銀投顧) analyst Mandy Lin (林秋香) said in a separate note.
“East Asian steel market demand is expected to stay weak in the third quarter, before picking up in the fourth quarter on China’s easy monetary policies and infrastructure construction projects,” Lin said.
Lin expects China Steel to lower domestic prices by between US$10 and US$20 a tonne for its September deliveries next month, when the company announces its price adjustment plans, after it left domestic prices for July-August shipments mostly unchanged.
Shares of China Steel rose 0.53 percent to NT$28.2 on the Taiwan Stock Exchange yesterday, versus the TAIEX’s 0.80 percent increase.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
‘LITTLE CHOICE’: The airline said it expected only about 8,000 of its 29,000 employees to be working by next month, but hoped to have 21,000 in the next two years Qantas Airways Ltd plans to cut at least 6,000 jobs and keep 15,000 more workers on extended furloughs as Australia’s largest airline tries to survive the coronavirus pandemic. Qantas yesterday announced a plan to reduce costs by billions of dollars and raise fresh capital. The plan includes grounding 100 planes for a year or more and immediately retiring its six remaining Boeing Co 747 planes. Chief executive Alan Joyce said the airline has to become smaller as it braces for several years of much lower revenues. He said the furloughed workers faced a long interruption to their airline careers. “The actions that we’re taking
Apple Inc’s decision to stop using Intel Corp processors in its Mac computers and switching to its own chips might benefit Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and boost Taiwan’s high-tech exports, Australia and New Zealand Banking Group (ANZ) said in a note on Tuesday. The US tech giant announced the “Apple silicon” initiative at its annual Worldwide Developers’ Conference, which started on Monday. The company said the first Mac powered by its own chips would debut by the end of this year and all product lines might shift to the new architecture in the next two years. TSMC is likely to
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price