Fri, Jul 22, 2016 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with agencies

STOCK EXCHANGE

THSRC to go under review

Taiwan Stock Exchange Corp (TWSE, 臺灣證券交易所) is to review a listing plan submitted by Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) today, the stock exchange operator said in a statement released yesterday. THSRC, which plans to shift to the main bourse from the Emerging Stock Market by the end of this year, has capital of NT$56.05 billion (US$1.75 billion). The high-speed rail operator reported a net profit of NT$20.82 billion last year, with earnings per share of NT$7.19. Last year’s revenue was NT$51.9 billion, up from NT$38.5 billion the previous year, company data showed.

STOCK EXCHANGE

TSMC’s value at record high

Shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) jumped 1.18 percent yesterday to NT$172, boosting the company’s market value to a record NT$4.46 trillion, according to Taiwan Stock Exchange Corp. Led by the rise in TSMC shares, the TAIEX closed up 0.54 percent at a year-high 9,056.56 points. Meanwhile, TSMC yesterday distributed NT$155.58 billion in cash dividends to its shareholders. Foreign investors, who held a combined 79.17 percent stake in TSMC, received more than NT$120 billion in dividends.

ELECTRONICS

Cando to file for bankruptcy

Touch panel maker Cando Corp’s (達鴻) board of directors yesterday decided to file for bankruptcy at the Taichung District Court to protect shareholders’ and creditors’ interests, the company said in a filing with the Taiwan Stock Exchange. The company booked NT$9.39 billion in liabilities, exceeding its total assets of NT$7.13 billion, the filing said. Cando shut down its factories and laid off most of its employees in January. TPK Holding Co (宸鴻), which wrote down Cando-related asset impairments last year, said the insolvency of its subsidiary would not have negative effects on its financial performance this year.

AUTO PARTS

Tong Yang shares up 5.87%

Auto parts maker Tong Yang Industry Co (東陽實業) yesterday saw its shares soar 5.87 percent to NT$54.1 after Daiwa Capital Markets suggested investors accumulate the stock this quarter. On Wednesday, Tong Yang reported its gross margin expanded to 25.2 percent in the first half of the year from 22.7 percent the previous year, and Daiwa said in a client note that gross margin would expand further in the second half due to higher mold income for its original equipment manufacturing business and lower depreciation expense for its sheet-metal manufacturing in its aftermarket business. Daiwa maintained a “buy” rating on Tong Yang and raised its 12-month price target from NT$57 to NT$66.

STEEL

Global production declines

Global crude steel production fell by 1.9 percent in the first half of this year compared with the same period a year ago, led by slumps in Europe and Latin America, the World Steel Association (WSA) said on Wednesday. Overall production dipped to 794.8 million tonnes, the group said, pointing to a 6.1 percent slide among EU-based producers and a 13.8 percent slump in South America. North America limited its decline to 0.6 percent, while Asia was off 1.0 percent. Last month, overall production was stable at 136 million tonnes, the WSA said. China, the world’s No. 1 steel producer and top consumer, churned out 69.5 million tonnes for a 1.7 percent rise year-on-year, it said.

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