Tue, Feb 03, 2015 - Page 13 News List

Motech Industries reports annual loss that beats forecasts

By Lisa Wang  /  Staff reporter

Motech Industries Inc (茂迪), the nation’s biggest solar cell maker, yesterday reported a better-than-expected annual loss of NT$952 million (US$30.07 million) for last year, as the volatile solar market hurts gross margins.

Capital Investment Management (群益投顧) forecast that Motech would lose NT$975 million last year. In 2013, Motech eked out a profit of NT$252 million.

Capital Investment suggests in a report that Motech could narrow its losses this year to NT$698 million, in expectation that a lower US antidumping tariff of 11.45 percent will help Motech return to the US market.

Its rivals face duties from 19.5 to 27.55 percent on US imports.

“Although [Motech’s] product price may not return to the level during the previous US antisubsidy and antidumping investigations, it may be still a bit higher than the spot price with a stable market,” Capital Investment said.

The consultant gave a “buy” rating on Motech, with a 12-month target price set at NT$43.

Last year, its gross profit fell 89.58 percent to NT$170 million, compared with NT$1.63 billion the previous year, filings with the Taiwan Stock Exchange showed.

Revenue shrank 6.42 percent to NT$19.98 billion last year from NT$21.35 billion in the previous year, the statements showed.

Solar cell maker Solartech Energy Corp (昇陽科技) yesterday reported NT$826 million in revenue last month, up 0.36 percent from NT$823 million in December last year. The figure showed an annual decline of 3.61 percent from NT$857 million.

Motech shares rose 0.82 percent to NT$42.95 yesterday. Solartech shares fell 0.53 percent to NT$18.8.

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