Tue, Feb 06, 2018 - Page 12 News List

USI looking for deals as profits hit five-year high

By Lisa Wang  /  Staff reporter

Universal Scientific Industrial (Shanghai) Co Ltd (USI, 環旭電子), which designs and makes electronic products and modules, posted its strongest annual net profit in five years, thanks to strong demand for its system-in-a-package (SiP) modules for consumer electronics during the peak season for the sector in the second half of last year.

Net income surged 63.1 percent to 1.31 billion yuan (NT$6.11 billion) last year, compared with 806 million yuan in 2016, the company said in a statement on Thursday last week.

That translated into earnings per share of 0.6 yuan, up from 0.37 yuan.

Revenue soared 23.86 percent year-on-year to 29.71 billion yuan last year, from 23.98 billion yuan, hitting the highest level since the company was listed on the Shanghai Stock Exchange in 2012.

“Entering the peak season in the second half, demand for new product launches [by clients] has helped boost SiP shipments and factory utilization,” the Shanghai-based company said in the statement. “The revenue increase in the consumer electronics segment also greatly helped grow net profits.”

During the fourth quarter of last year, net profit jumped about 65 percent year-on-year to 452 million, with revenue up 27 percent annually to 9.52 billion yuan, USI said.

USI is a subsidiary of Taiwan’s Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s largest chip tester and packager.

Aside from SiP products, the storage and automotive electronics segments also showed strong performance last quarter, USI said.

USI said that after “rebalancing” last year by optimizing its product line-up, this year would be an “expansion” year.

The company said it is looking for strategic investment targets to explore new business opportunities, scale-up production and expand manufacturing facilities this year.

The expansion would be necessary to cope with customers’ new product demand, it said.

The potential investments might not inject immediate growth momentum into the company, but they could help build strong foundations for growth next year, USI said.

USI is looking for merger-and-acquisition deals in its search for long-term growth opportunities.

Separately, Siliconware Precision Industries Co (SPIL, 矽品精密), the world’s No. 3 chip packager and tester, yesterday reported a 9.5 percent year-on-year decline in revenue for last month to NT$6.23 billion.

A year earlier, SPIL made NT$6.88 billion, according to a company filing with the Taiwan Stock Exchange.

On a monthly basis, that represented a 12 percent contraction from NT$7.08 billion.

SPIL is scheduled to hold an extraordinary shareholder’s meeting on Monday next week to vote on a takeover bid by bigger rival ASE.

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