THI Global Holdings Corp (台驊國際投資控股), a Taiwanese freight-forwarder and logistics firm, is targeting increased long-term profitability in its trade logistics business by raising revenue to 20 percent from 15 percent within the next few years.
Following rising demand from China, the company aims to set up more warehouse bases in Shanghai, Shenzhen and other southern Chinese cities in the second half of this year.
“Compared with the freight-forwarding business, the trade logistics sector and logistics management business offer a higher gross margin,” THI spokeswoman Echo Wan (萬心寧) told a conference of investors yesterday.
The average gross margin of the traditional freight-forwarding business stands at between 12 percent and 16 percent, with trade logistics exhibiting a gross margin of about 30 percent, THI statistics showed.
Wan remained optimistic about the company’s business this quarter — the traditional peak period for the industry — saying net income generated last month has already reached half of the level recorded in the first half of this year.
THI saw net profits total NT$47.11 million (US$1.57 million), or NT$0.66 per share, in the first six months of the year, showing a significant improvement from NT$2.16 million, or NT$0.03 per share, recorded a year earlier, its stock exchange filing data showed.
In the April-to-June period, net income stood at NT$43.67 million, or NT$0.61 per share, doubling from the level of NT$20.76 million, or NT$0.29 per share, posted during the same period last year.
Despite sales showing a 4.3 percent year-on-year decline in the second quarter, THI’s strategy to choose customers more carefully helped improve gross margin to 16.8 percent, up from 14.3 percent recorded a year ago, company statistics showed.
WASHINGTON’S INCENTIVES: The CHIPS Act set aside US$39 billion in direct grants to persuade the world’s top semiconductor companies to make chips on US soil The US plans to award more than US$6 billion to Samsung Electronics Co, helping the chipmaker expand beyond a project in Texas it has already announced, people familiar with the matter said. The money from the 2022 CHIPS and Science Act would be one of several major awards that the US Department of Commerce is expected to announce in the coming weeks, including a grant of more than US$5 billion to Samsung’s rival, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), people familiar with the plans said. The people spoke on condition of anonymity in advance of the official announcements. The federal funding for
HIGH DEMAND: The firm has strong capabilities of providing key components including liquid cooling technology needed for AI servers, chairman Young Liu said Hon Hai Precision Industry Co (鴻海精密) yesterday revised its revenue outlook for this year to “significant” growth from a “neutral” view forecast five months ago, due to strong demand for artificial intelligence (AI) servers from cloud service providers. Hon Hai, a major assembler of iPhones that is also known as Foxconn, expects AI server revenues to soar more than 40 percent annually this year, chairman Young Liu (劉揚偉) told investors. The robust growth would uplift revenue contribution from AI servers to 40 percent of the company’s overall server revenue this year, from 30 percent last year, Liu said. In the three-year period
LONG HAUL: Largan Energy Materials’ TNO-based lithium-ion batteries are expected to charge in five minutes and last about 20 years, far surpassing conventional technology Largan Precision Co (大立光) has formed a joint venture with the Industrial Technology Research Institute (ITRI, 工研院) to produce fast-charging, long-life lithium-ion batteries for electric vehicles, mobile electronics and electric storage units, the camera lens supplier for Apple Inc’s iPhones said yesterday. Largan Energy Materials Co (萬溢能源材料), established in January, is developing high-energy, fast-charging, long-life lithium-ion batteries using titanium niobium oxide (TNO) anodes, it said. TNO-based batteries can be fully charged in five minutes and have a lifespan of 20 years, a major advantage over the two to four hours of charging time needed for conventional graphite-anode-based batteries, Largan said in a
Taiwan is one of the first countries to benefit from the artificial intelligence (AI) boom, but because that is largely down to a single company it also represents a risk, former Google Taiwan managing director Chien Lee-feng (簡立峰) said at an AI forum in Taipei yesterday. Speaking at the forum on how generative AI can generate possibilities for all walks of life, Chien said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) — currently among the world’s 10 most-valuable companies due to continued optimism about AI — ensures Taiwan is one of the economies to benefit most from AI. “This is because AI is