Fri, Apr 14, 2017 - Page 11 News List

Taiwan Business Quick Take

Staff writer

TAX REVENUE

Nation’s coffers boosted

On the back of an increase in average daily turnover on the local bourse last month, revenue from the securities transaction tax grew 2.4 percent year-on-year to NT$8.2 billion (US$270.4 million), the highest level since August 2014, the Ministry of Finance said yesterday. In the first three months of this year, securities transaction tax revenue totaled NT$18.9 billion, up 6 percent from a year earlier and the largest first-quarter revenue in the past three years, the ministry said. The average daily turnover of the local equity market in the first quarter rose to NT$113 billion from NT$108.6 billion in the same period last year, ministry data showed.

TEXTILES

Shinkong to reduce capital

Shinkong Spinning Co (新光紡織) yesterday said that it is considering reducing its capital as part of efforts to boost its efficiency and increase the return on its equity. Shinkong Spinning’s board agreed to reduce its capital by 50 percent, or NT$1.5 billion, and shareholders are to receive NT$5 per share should they approve the plan in June, the company said in a Taiwan Stock Exchange filing. Last year, Shingkong Spinning posted NT$1.34 billion in revenue, a 20.3 percent year-on-year increase, or earnings per share of NT$0.52, while gross margin rose 4.02 percentage points to 22.8 percent. The board has proposed distributing a cash dividend of NT$0.456 per share subject to shareholder approval.

COMPUTING SERVICES

IEI posts higher sales

IEI Integration Corp (威強電), a leading industrial computing services provider that integrates computing platforms and customization services, yesterday said its consolidated sales grew 29.96 percent year-on-year to NT$2.2 billion in the first quarter, down 13.44 percent from the previous quarter. The company said sales in the second quarter would be lower than the first as the company had completed some major orders for gaming customers in the first quarter. However, the company said the number would still be higher than a year earlier due to stable orders for point-of-sale applications from the restaurant and beverage sector.

OPTICAL SENSORS

PixArt revenue to grow

Hsinchu-based chip image sensor maker PixArt Imaging Inc’s (原相科技) revenue this quarter is likely to grow by a double-digit percentage from last quarter’s NT$1.1 billion, due to more working days and rising demand for game console controller optical sensors, several media outlets reported yesterday, citing unnamed institutional investors. As PixArt no longer needs to pay a substantial amount of royalties to Avago Technologies Ltd, along with a continued improvement in its product mix, the company’s profit structure could notably improve and gross margin is likely to be higher than last year’s 50.1 percent, the reports said.

FOOTWEAR

Feng Tay hit by FX losses

Feng Tay Enterprise Co (豐泰鞋業), which provides athletic footwear to Nike Inc, on Wednesday reported weaker-than-expected earnings in the first quarter, mainly due to a less favorable product mix and unfavorable foreign-exchange rates. The company said its net profit for the first quarter came in at NT$807 million, down 11.7 percent year-on-year and 17.4 percent quarter-on-quarter, as it posted NT$100 million in foreign-exchange losses. Earnings per share were NT$1.21. Feng Tay said its gross margin declined to 20.5 percent and operating margin came in at 8 percent.

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