TV and online retailer Momo.com Inc (富邦媒體) yesterday gave a positive business outlook for the year, saying that the company’s investments in overseas joint ventures and logistics systems are expected to bear fruit.
“We expect a higher profit contribution from overseas business this year,” company president Lin Chi-feng (林啟峰) told a news conference in Taipei.
Lin said that profit from the company’s overseas joint ventures is expected to make up 10 percent of its total profits this year, in comparison with last year’s 6 percent.
Momo.com has a 20 percent stake in Global Home Shopping Co Ltd, a Chinese TV shopping company with more than 130 million customers.
Lin said that the joint venture is expected to generate sales of NT$10 billion (US$322.8 million) this year on the back of rapid sales growth in China’s TV shopping market.
Momo.com also has a 35 percent stake in TVD Shopping Co Ltd, a Thailand-based joint venture with multi-channel marketing company TV Direct.
TVD Shopping is seeking approval of its initial public offering in Thailand and is likely to be listed by the end of this year, Lin said.
Commenting on new joint ventures, Lin said that Momo.com’s partnership with Malaysia-based Pavilion Trading Enterprise Sdn Bhd is to begin operations under the Momo brand in the third quarter.
The company said it plans to spend NT$180 million to acquire a 45 percent stake of the joint venture, aiming to increase its presence in the Malaysian market.
“Malaysia is not yet a saturated [e-commerce] market and we have only two major competitors there,” Lin told reporters, declining to give a near-term target.
Eyeing the growing e-commerce market in Southeast Asia, the company is also in talks with several companies from the Philippines, Vietnam and Indonesia.
Alongside the quick expansion of its overseas business, the company said it expects its new logistics center to improve efficiency and reduce labor costs. Its automated logistics center in Taoyuan is set to start operations in the third quarter, the company said.
Last year, the company reported a net profit of NT$1.18 billion, a 11.6 percent increase from the previous year’s NT$1.06 billion, according to the company’s filing with the Taiwan Stock Exchange.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to