Sat, Jan 23, 2016 - Page 14 News List

Taiwan Business Quick Take

Staff writer

ELECTRONICS

Ennoconn, Kontron team up

Computer peripheral device supplier Ennoconn Corp (樺漢) yesterday entered a strategic partnership with Kontron AG, a leading global provider of embedded computer technology, to take advantage of a rapidly changing technological world, especially the rapid development of the Internet of Things market. Ennoconn said in a regulatory filing that its subsidiary, Ennoconn Investment Holdings Co, has acquired a 49 percent stake in Kontron Canada Inc for US$57.3 million. The transaction is still subject to regulatory and corporate approvals, which are expected to be granted early this year, said Ennoconn, which is a subsidiary of Hon Hai Precision Industry Co (鴻海精密).

ELECTRONICS

Apex net profit rises 25%

Printed circuit board (PCB) supplier Apex International Co (泰鼎) yesterday reported a net profit of NT$534 million for last year, or earnings per share of NT$4.36. The company had a net income of NT$427.3 million in 2014, or NT$4.06 per share. Revenue totaled NT$8.63 billion last year, up 17.13 percent from 2014. Apex International is the parent company of Thailand’s second-largest PCB firm, Apex Circuit (Thailand) Co. The company said it expects sales from the automotive industry to continue driving its business growth this year.

CHEMICALS

Goldman predicts growth

Companies in Taiwan’s chemicals sector might see their earnings grow by an average of 5 percent this year and between 7 and 8 percent in the next two years, Goldman Sachs Group Inc said in a client note yesterday, citing further declines in oil prices and a weaker New Taiwan dollar. Goldman said companies’ core EBITDA — earnings before income tax, depreciation and amortization — could see a 3 percent boost on average this year should Brent oil prices drop to US$20 per barrel, while core EBITDA could see a 2 percent increase if the local currency trades at NT$34.5 per US dollar. Goldman has “buy” recommendations on Formosa Plastics Corp (台塑), Formosa Petrochemical Corp (台塑石化) and Nan Ya Plastics Corp (南亞塑膠), but maintains its “sell” rating on China Steel Chemical (中鋼碳素) because of margin contraction for its products.

SEMICONDUCTORS

ChipMOS announces merger

ChipMOS Technologies Inc (南茂) on Thursday said the company had decided to merge with its parent company, ChipMOS Technologies (Bermuda) Ltd, to simplify and streamline the group structure and reduce operating costs. The US$101 million deal — at US$19.77 per share — is expected to close in the third quarter of this year. It also aims to enhance operating efficiency and achieve a more efficient tax structure, the companies said in a statement. Once it receives approvals from shareholders and regulators, the Taiwanese chip packaging and testing unit will become the surviving entity, according to the statement. The deal comes after ChipMOS announced last month that it would sell a 25 percent stake to China’s Tsinghua Unigroup (清華紫光) for NT$11.9 billion.

ELECTRONICS

Merry stake sale approved

Shareholders of audio electronics maker Merry Electronics Co (美律) yesterday approved a company plan to sell a 25 percent stake to Chinese connector supplier Luxshare Precision Industry Co (立訊). The company plans to sell 63 million shares to Luxshare at NT$60 per share. The NT$3.78 billion deal, which is subject to approval by the Investment Commission, will make Luxshare Merry’s largest shareholder with three seats on the Taiwanese company’s seven-member board.

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