Sat, Aug 08, 2015 - Page 14 News List

Business News Quick Take

Staff writer

STOCK MARKET

Capitalization declines

The market capitalization of the Taiwan Stock Exchange stood at about NT$24.62 trillion (US$775 billion) as of yesterday, down 2.58 percent, or NT$651.39 billion, from a week earlier, as the TAIEX fell 223.05 points, or 2.57 percent, in the whole of last week, according to statistics released by the stock exchange. The TAIEX closed at 8,442.29 points yesterday. As the main bourse remained in consolidation mode, the benchmark index is forecast to move between 8,300 and 8,500 points in the near term, dealers said.

BANKING

Bad loans fall

Taiwanese banks’ average non-performing loan ratio fell to 0.25 percent at the end of June from 0.26 percent in the previous month, reflecting healthy asset quality for the 39 domestic lenders, the Financial Supervisory Commission said on Thursday. Total outstanding loans at domestic banks stood at NT$24.96 trillion in June, a decrease of NT$47 billion from May, while bad loans totaled NT$63 billion, a decrease of NT$19 million from the previous month’s NT$64.9 billion, the commission said. The coverage ratio — loans covered by banks’ provisions and a gauge indicating the sufficiency of bad loan reserves — rose 10.59 percentage points to 501.14 percent in June, the commission said.

LED SUPPLIERS

Everlight income plunges

LED supplier Everlight Electronics Co’s (億光) net income last quarter plunged 37.19 percent annually and 44.91 quarterly to NT$309 million, or NT$0.7 per share, below the market’s consensus estimate of NT$389 million. The company yesterday posted revenue of NT$2.25 billion for last month, down 13.75 percent from last year’s NT$2.61 billion and 7.02 percent from the previous month’s NT$2.42 billion. Cumulative revenue totaled NT$16.55 billion in the first seven months of the year, up 0.13 percent from NT$16.53 a year earlier. Everlight’s revenue this quarter might increase 4 percent from last quarter’s NT$7.05 billion, but the firm’s growth momentum will remain below historical seasonal patterns, Yuanta Securities Investment Consulting Co (元大投顧) said in a note yesterday.

PANELMAKERS

Innolux revenue takes hit

Innolux Corp (群創), the nation’s biggest LCD panelmaker, yesterday said revenue dropped slightly by 1.7 percent to NT$29.66 billion last month, compared with NT$30.16 billion in June, after shipments of PC and TV panels shrank 3.7 percent sequentially. Innolux expects shipments of PC and TV panels to drop by a mid-single-digit percentage sequentially this quarter, while prices would be flat on better TV demand. Shipments of small and medium-sized panels rose 17.5 percent last month from a month earlier, the company said. In the seven-month period ended last month, revenue declined 5.69 percent to NT$223.57 billion from NT$237.05 billion in the same period last year.

BICYCLE MAKERS

Merida revenue picks up

Merida Industry Co (美利達), the nation’s No. 2 bicycle maker, yesterday reported last month’s revenue grew 10.68 percent from a year earlier and 27.42 percent from June to NT$3.26 billion as demand recovery in China picked up gradually. The company’s cumulative revenue for the first seven months totaled NT$16.498 billion, up 7.23 percent from the same period last year, Merida said. The company is expecting revenue for this year to grow by between 5 percent and 10 percent from last year’s NT$27.2 billion.

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