Chailease raises NT$3.2bn
Chailease Holding Co (中租控股), the nation’s top leasing services provider, yesterday said one of its subsidiaries had raised NT$3.2 billion (US$97.05 million) from the sale of three-year non-guaranteed commercial paper to investors. The amount raised exceeded Chailease Finance Co’s (中租迪和) initial target of NT$3 billion and the unit plans to use the proceeds to boost its medium-term working capital, its parent company said in a statement. The commercial paper sale was managed by International Bills Finance Corp (國際票券), with participating financial institutions including Taiwan Finance Corp (台灣票券), Yuanta Commercial Bank (元大銀行) and Union Bank of Taiwan (聯邦銀行), Chailease Holdings said.
Viking eyes shares sale
Viking Tech Corp (光頡科技), a supplier of resistors and inductors, yesterday said it had received a notice of tender offer from Guangdong Fenghua Advanced Technology Holding Co (廣東風華高新科技), which aims to purchase up to 40 percent of its shares on the open market. The Chinese firm plans to acquire between 41.07 million and 46.94 million of its common shares at NT$29.8 per share, Viking Tech said in a statement. There is no time frame set for the offer, because Guangdong Fenghua needs to obtain regulatory approval from Taiwan and China before it can start the planned share purchase, according to the statement.
IntelliEPI releases data
Intelligent Epitaxy Technology Inc (IntelliEPI, 英特磊), a supplier of epitaxy-based compound semiconductor wafers, yesterday said its net income reached NT$22 million in July, or NT$0.71 per share, and aggregate net income totaled NT$103 million from January to July, or NT$3.34 per share. The company released its earnings results at the request of the local stock exchange regulator after its shares jumped more than 36 percent in the past 10 sessions. IntelliEPI shares yesterday closed unchanged at NT$122 on the over-the-counter market. Revenue for the first eight months of this year increased 46.02 percent from a year earlier to NT$594 million, IntelliEPI said in a statement.
Capital buyback approved
Capital Securities Corp (群益金鼎證券) yesterday said its board approved a share buyback scheme to maintain the company’s credibility and safeguard shareholders’ interests. The company plans to purchase 50 million of its shares, or 2.11 percent of total shares in circulation, on the open market from this week to Nov. 21. Capital Securities plans to buy back its shares at a price of between NT$7 and NT$11 per share, and would spend up to NT$6.81 billion on the buyback scheme, according to a company statement.
Hotai touts Altis sales
Hotai Motor Co (和泰汽車), which distributes Toyota and Lexus vehicles, yesterday said it expects sales of its Corolla Altis sedans to exceed 40,000 units this year, securing the company’s leading position among its peers in the domestic auto market. The company made the remark after it launched a special edition of its popular Altis model yesterday, of which Hotai hopes to sell up to 10,000 units by the end of this year. Altis sales had exceeded 480,000 units as of the end of last month, accounting for more than 30 percent of vehicles sold by Hotai and topping all models sold in the nation, according to the latest auto industry data.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a