Nova Technology Corp (朋億), which supplies chemical dispensing and waste chemical collection systems to chip and LCD companies, on Friday reported record-high earnings and sales for last year, thanks to capacity expansion in the semiconductor, flat panel and optoelectronics sectors in China.
The Jhubei (竹北), Hsinchu County-based company saw net profit soar 69.25 percent annually to NT$447.48 million (US$15.27 million) from NT$264.39 million in 2016.
Earnings per share increased 53.31 percent from NT$9.83 a share to NT$15.07 over the period.
Revenue surged 26.07 percent to NT$3.34 billion from NT$2.65 billion in 2016, the company said.
China is a major market for Nova, accounting for 67 percent of its total revenue last year, followed by Taiwan with 29 percent.
The company said a 44 percent increase in China sales last year helped boost its gross margin to 30 percent from 22 percent in 2016, while net profit margin increased from 10 to 13 percent over the period.
Return on equity rose to 29.22 percent last year, from 28.22 percent in 2016, it added.
Nova said it has a positive outlook for this year, as it expects shipments and revenue to continue expanding from last year’s levels.
The company earlier last month said that most of its growth this year would come from the Chinese semiconductor sector.
Considering the company’s sound financial structure, Nova’s board on Thursday approved a proposal to distribute a cash dividend of NT$10 per common share, the highest level in the company’s history and representing a payout ratio of 66.36 percent.
Nova distributed cash dividends of NT$3.5 in 2016 and NT$2 in 2015, company data showed.
Nova shares on Friday rose 8.57 percent to NT$190 in Taipei trading. They have risen 6.15 percent since the beginning of this year, outperforming the over-the-counter Taipei Exchange’s 0.61 percent decline.
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