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.
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.
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.
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.
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.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
GOGOROS TO GO: The scooter maker’s CEO said that the electric vehicles ‘are the perfect complement to a program designed to stimulate the Taiwanese economy’ Minister of Economic Affairs Wang Mei-hua (王美花) yesterday announced a draw to encourage people to claim their Triple Stimulus Vouchers digitally. The prizes include movie tickets and 25 electric scooters donated by Gogoro Inc (睿能創意), Wang said. The Ministry of Economic Affairs said that it would hold a scooter draw every day for the next 10 days, beginning yesterday, after which there would be a draw every week for 15 weeks. The first winner was a Taiwan Cooperative Bank (合庫銀行) credit card user, the ministry said. The benefits of claiming the vouchers digitally extend beyond the draws, with many businesses offering special deals for