Hiwin Technologies Corp (上銀科技), which produces linear guideways, ball screws and industrial robots, on Wednesday reported better-than-expected results for the second quarter.
Net profit from April to June reached NT$435.25 million (US$14.53 million), or NT$1.77 per share, up 119 percent from NT$199.01 million, or NT$0.81 per share, the previous quarter, the company’s filing to the Taiwan Stock Exchange showed.
However, last quarter’s net profit was 30.84 percent lower than the NT$630.83 million posted a year ago, the filing showed.
Credit Suisse Securities Taipei branch analyst Jerry Su (蘇厚合) said the company’s second-quarter net profit beat consensus estimates as the company reduced its bad loans.
The decline in bad debts helped Hiwin lower its operating expenses last quarter by 28 percent sequentially to NT$475 million, Su said in a note.
Hiwin’s gross margin last quarter also improved to 37.9 percent from 34.9 percent a quarter ago, higher than the 36 percent forecast by analysts, Su said.
However, the company still faces risks, such as weak Chinese demand, near-term macroeconomic uncertainties and the likelihood that end demand may not recover until next year, Su said.
“Hiwin and Taiwanese computer numerical control machine tool makers might face more margin pressure on yen depreciation,” he added.
According to the Taiwan Association of Machinery Industry’s latest data, the nation’s machinery exports declined 5.3 percent to US$11.22 billion in the first seven months from a year ago.
Hiwin shares closed 6.94 percent higher at NT$185 yesterday.