Sat, Dec 29, 2012 - Page 13 News List

Chieftek sees 17.5% stock surge on trading debut

By Camaron Kao  /  Staff reporter

The share price of the world’s third-largest miniature linear motion component producer, Chieftek Precision Co Ltd (直得科技公司), surged 17.5 percent to NT$47 on its first day of trading, after the company provided an upbeat forecast for next year.

“Next year will be a good year for our company because the economy is recovering and our products are the backbone of the manufacturing industry,” chairwoman and chief executive officer Angelika Chen (陳麗芬) said at a ceremony marking the company’s debut on the GRETAI Securities Market.

Revenue should increase next year as clients were running low on inventory and there will be demand for replenishment, Chen said.

During its initial public offering (IPO), Chieftek raised approximately NT$7.41 billion (US$255 million) by issuing 4.63 million new common shares. The company said it planned to use the funds for capacity expansion.

Earlier this year, the firm purchased 26,000m2 of land adjacent to the Southern Taiwan Science Park (STSP, 南部科學園區) to expand production lines if the company receives larger than expected orders, she said.

Chen said the ability to produce precise and exact models is becoming increasingly important in global manufacturing, and her company accounts for a large global market share of miniature precision machinery components.

Chieftek posted a net profit of NT$82.63 million, or NT$1.71 per share, in the first three quarters of this year, company data showed.

From January through last month, the company reported NT$1.1 billion in revenue, down 4.26 percent from NT$1.15 billion a year ago.

This year, the company’s financial results would be slightly worse than last year and 2010, Chen said.

The firm made NT$277 million in net profit last year on revenue of NT$1.16 billion, according to a filing to the Taiwan Stock Exchange.

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