Advantech revenue shrinks
Industrial computer maker Advantech Co (研華科技) yesterday said its revenue fell 7.75 percent year-on-year to NT$3.03 billion (US$97.9 million) last month as demand recovers from a downturn. That represented a monthly decline of 21 percent from December last year’s NT$3.83 billion. Japan and South Korea showed the strongest revival last month, but recovery in emerging markets was slow, the company said in a statement. Demand at its industrial automation group, applied computing group and embedded core group were stronger than at other groups, the company said.
China demand boosts Adata
Memory module maker Adata Technology Co (威剛科技) yesterday posted 10.72 percent month-on-month growth in revenue for last month at NT$2.51 billion, as inventory buildup demand in China boosted prices. That supported the company’s forecast for tight memorychip supply and an uptrend in chip prices this quarter, which could further boost the company’s operations, it said. Last month, revenue from data cards and NAND flash memory products surged 39 percent month-on-month, hitting the highest level in two years, Adata said in a statement. Revenue from DRAM products rose 12 percent last month, making DRAM the biggest revenue source for the firm. DRAM products made up about 44 percent of Adata’s overall revenue.
China Motor bullish on sales
China Motor Corp (中華汽車), which distributes Mitsubishi sedans and own-brand CMC commercial vehicles, aims to achieve a 3.5 percent sales increase this year, the company said in a statement. The nation’s third-largest car distributor has set a sales target of 50,000 vehicles this year, up from 44,227 last year. China Motor also gave an optimistic outlook for its Chinese business, saying that customers’ growing demand for sport utility vehicles would help stimulate sales. Sales at the company’s joint venture in China, South-East Motors Co (東南汽車), are expected to grow 33.5 percent to 158,000 units this year, the firm said.
Allianz eyes iPhone orders
The nation’s top technology fund said Apple Inc’s next iPhone and self-driving cars would be its hottest trades this year. Bullish bets that iPhone orders would boost earnings at the nation’s many suppliers have helped drive the TAIEX to a one-and-a-half-year high, while foreign investors have pumped US$1.5 billion into local shares so far this year, the most among Asian markets tracked by Bloomberg. “The biggest theme this year will be the iPhone,” Allianz Global Investors Taiwan said. The fund house singled out companies that make devices that support wireless charging and augmented reality, which could be new features of the next iPhone. Allianz Global Investors Taiwan Technology Fund has had a total return of 28 percent in the past 12 months, the top performer among its 49 peers.
Toyota raises its forecast
Toyota yesterday said that its net profit in the final nine months of last year fell by almost a quarter year-on-year, but revised up its full-year forecast due to foreign-exchange gains and a pickup in sales. The Japanese firm said net profit fell 24 percent to ￥1.43 trillion (US$12.7 billion) from ￥1.89 trillion the previous year. The maker of the Prius hybrid forecast a full-year net profit of ￥1.7 trillion, up from its earlier estimate of ￥1.55 trillion.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
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