Novatek 2013 profits hit high
Novatek Microelectronics Corp (聯詠), which supplies chips that control flat-panel displays, yesterday reported that its net profit last year hit a six-year high of NT$4.74 billion (US$156.98 million), or earnings per share of NT$7.81, on the back of strong demand for touch-enabled mobile devices. Last quarter, Novatek’s net profit dropped 3.91 percent to NT$1.19 billion from NT$1.24 billion in the third quarter. The firm predicts revenue to be flat this quarter at between NT$10.3 billion and NT$10.7 billion from last quarter’s NT$10.61 billion, as it expects increasing shipments of display driver integrated circuits used in high-end smartphones and tablets to offset seasonal weakness. An improved product mix is also expected to boost the company’s gross margin to between 27 and 28 percent this quarter from the 27.36 percent seen last quarter. Novatek forecast its quarterly operating margin would be between 12 and 14 percent.
CSC reports profit increase
China Steel Corp (CSC, 中鋼), the nation’s only integrated steelmaker, on Tuesday reported an 11 percent monthly increase in operating profit to NT$1.68 billion (US$55.41 million) from NT$1.56 billion. It attributed the growth to downstream companies increasing their inventory before the Lunar New Year holiday. CSC’s shipments last month increased to 791,384 tonnes from 749,094 tonnes a month earlier, the company said.