Firms’ pre-tax profit up 3.4%
The aggregate pre-tax profit posted by 801 listed companies totaled NT$441.3 billion (US$14.4 billion) in the first quarter, up 24.41 percent from NT$354.7 billion in the same period last year, the Taiwan Stock Exchange (TWSE) said in a statement yesterday. The TWSE said 801 listed firms in the non-financial sector met last week’s Friday deadline to report their first-quarter results, while touchpanel maker Wintek Corp (勝華科技) failed to release its quarterly results due to business restructuring. The semiconductor, electronics and transportation sectors served as major drivers for listed firms’ profit growth last quarter, the exchange said. Aggregate sales for the 801 firms rose by 3.4 percent from a year earlier to NT$6.32 trillion last quarter, it said.
Largan shares hit record high
Shares of Largan Precision Co (大立光), a leading smartphone camera lens module supplier, yesterday hit a record high as investors expressed confidence in the company’s leading position in the sector. Largan shares, which are the most expensive stocks in Taiwan, closed 6.23 percent higher at NT$3,325, the highest ever in the company’s history, boosting its market capitalization to NT$446.02 billion, Taiwan Stock Exchange data showed.
Powerchip gets loan for debts
Powerchip Technology Corp (力晶科技), which makes memory chips and driver ICs for displays, yesterday said it has obtained NT$15 billion in syndicated loans from 15 local lenders led by Land Bank of Taiwan (土地銀行) to repay debts. Powerchip has reduced its bank loans to NT$20 billion as of March. After paying back all of its loans, the chipmaker is to return to normal operation, the company said in a filing with the Taiwan Stock Exchange.
HTC sales drag on Silitech
Handset keypad supplier Silitech Technology Corp (閎暉) is expected to see weaker-than-expected sales growth this quarter from last quarter’s NT$868 million because of slowing demand for HTC Corp’s (宏達電) flagship One M9 model, HSBC Securities Taiwan Corp Ltd said in a note on Monday. The brokerage also said Silitech’s plan to start producing 3D glasses for Samsung Electronics Co this quarter would initially suffer from poor yield, as it is the first 3D glasses project with a screen size larger than 2 inches. However, 3D glass revenue is expected to account for 10 percent of the company’s sales this year, compared with 1 percent last year, HSBC said. In the first quarter, Silitech reported net income of NT$30 million, up from NT$1 million in the previous quarter and a net loss of NT$46 million a year earlier, with earnings per share of NT$0.16.
Fubon investment approved
Fubon Securities Co (富邦證券), the brokerage subsidiary of Fubon Financial Holding Co (富邦金控), has won the Financial Supervisory Commission’s (FSC) approval to invest in a Chinese futures company. Fubon Securities plans to invest no more than 360 million yuan (US$58 million) to acquire a 40 percent stake in Huishang Futures Broker Co Ltd (徽商期貨) to be the second-largest shareholder in the Chinese futures broker. The approval marks the first filing by a brokerage house in Taiwan to receive the commission’s permission to invest in a Chinese futures broker since Beijing lifted a ban on foreign investments in Chinese futures companies in October last year.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign