TSMC shares fall 3.64%
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares fell 3.64 percent yesterday, after its American depositary receipts dropped 5.39 percent overnight in New York. TSMC’s shares also came under pressure after Maybank Kim Eng Securities Ltd lowered its price target on the stock, saying the company faces deteriorating fundamentals. Maybank said in a note that TSMC might revise downward its guidance for this year, as the company faces softer end-demand in China, while a rapid fall in foreign exchange in emerging markets has resulted in customers cutting back in orders, coupled with high inventory in smartphone supply chain. The Malaysian brokerage cut its price target on TSMC shares to NT$102 from NT$120. The shares yesterday closed at NT$145.5 in Taipei trading.
TTY fallout ‘limited’
Drugmaker TTY Biopharm Co (台灣東洋藥品) chairman Clark Hsiao (蕭英鈞) yesterday said alleged embezzlement involving former chairman Lin Rong-jin (林榮錦) would have only a limited impact on business this year. The remarks came after TTY reported net income of NT$779 million (US$24.8 million) for last year, up 33 percent from NT$587 million in 2013, with earnings per share of NT$3.13, the highest in its history. Revenue declined to NT$2.98 billion from NT$3.11 billion, with a gross margin of 59 percent. TTY attributed the increased profit to cost-saving effort, rising orders from customers and contribution from its reinvestments. Lin said the company is upbeat about this year’s outlook, with up to six products in its pipeline ready to hit the local market.
XPEC income rises 421.8%
Game developer XPEC Entertainment Inc (樂陞科技) yesterday said net income grew 421.8 percent to NT$282 million last year, thanks to contributions from its art production business and its merger with Tiny Piece Co. Revenue increased 40.87 percent year-on-year to NT$950 million. With earnings per share of NT$3.55 for last year, XPEC’s board plans to distribute a cash dividend of NT$0.3 per share and a stock dividend of 43 percent to shareholders, according to a statement. The cash dividend translates into a cash dividend yield of 8.45 percent.
Hota net profit up 63.47%
Hota Industrial Manufacturing Co (和大工業), which makes gears and shafts for automobiles, yesterday said it made a 63.47 percent gain in net profit last year on the back of rising orders of high-margin products, expanding business scale and increased automation. Net profit was NT$712 million last year, with earnings per share of NT$3.06, Hota said in a statement to the Taiwan Stock Exchange. Revenue grew 13.8 percent year-on-year to NT$4.24 billion last year. Hota plans to pay a cash dividend of NT$2.1 per share, which represents a 68.63 payout ratio.
EVA plans leasing deal
EVA Airways Corp (EVA, 長榮航空) yesterday announced it plans to introduce two Airbus 330-300 aircraft by selling them to Pembroke Capital Ltd — an aircraft-leasing company in Ireland — or its affiliates and leasing them back for operation. The transaction totaled less than US$500 million according to a stock exchange filing. The airline is also scheduled to take delivery of six A321-200 and four Boeing 777-300ER aircraft later this year.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment