Wed, Aug 19, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer, with agencies

ELECTRONICS

Samsung touts Taiwan sales

Samsung Electronics Co yesterday said its newly launched Galaxy Note 5 phablet is poised to achieve its sales target in Taiwan for the first month, as initial sales have been better-than-expected. The company said in a statement that sales of the Note 5 in the first two days following its launch in the nation were nearly 20 percent higher than those of its predecessor, the Note 4. Therefore, Samsung said it is confident that it is set to achieve its sales target of 50,000 Note 5 handsets sold in the nation during the first month, compared with 40,000 units of previous Note models.

SOLAR INDUSTRY

SAS approves share buyback

Solar wafer maker Sino-American Silicon Products Inc (SAS, 中美矽晶) yesterday said its board has approved a share buyback program in order to safeguard shareholders’ interests. The company said in a filing with the Taiwan Stock Exchange that it plans to repurchase as many as 30 million common shares, or 5.17 percent of the company’s total outstanding shares, at between NT$28 and NT$45 per share from today through Oct. 18. The latest share buyback, the biggest in the company’s history, came after SAS shares plunged about 25 percent to NT$31.05 in Taipei trading yesterday.

INTERNET

PChome to issue 7m shares

Online shopping portal PChome Online Inc (網路家庭) yesterday said it plans to raise NT$250.6 million (US$7.67 million) to finance the company’s new operations and warehouse construction. The company said in a Taiwan Stock Exchange filing that it has decided to issue 7 million new shares at NT$358 per share to increase its working capital. The company last week reported weaker-than-expected results for last quarter, with net profit declining 8 percent year-on-year and 27 percent quarter-on-quarter to NT$158 million, which CIMB Securities Ltd attributed to Pchome’s lower operating margin of 4.5 percent last quarter and a higher tax rate of 31.9 percent because of larger retained earnings.

PHARMACEUTICALS

Formosa labs tout capacity

Active pharmaceutical ingredient maker Formosa Laboratories Inc (台耀化學) on Monday said its phosphate binder production lines are running at full capacity, thanks to strong demand from new clients. With clear order visibility, sales in the second half of the year are estimated to be 45 percent higher than the first half’s NT$1.01 billion, Yuanta Securities Investment Consulting Co (元大投顧) said in a note yesterday. Gross margin is also expected to be higher than 30.9 percent in the second quarter due to a bigger contribution from Formosa’s active pharmaceutical ingredient business, Yuanta said. Formosa Laboratories is one of the few suppliers of the phosphate reducing drug Sevelamer globally, with an annual capacity of 350 tonnes.

BONDS

Government bonds fall

Prices of government bonds fell yesterday, pushing the 10-year yield up to its highest since May, as the central bank held its overnight rate after cutting it for five days in a row. The rate on one-day certificates of deposit was kept at 0.37 percent yesterday, according to people familiar with the matter. The rate has been lowered by 1.8 basis points over the past five days, spurring the biggest weekly drop in 10-year bond yields since 2011, as the central bank tries to revive an economy growing at its slowest pace in three years.

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