Tue, Mar 20, 2018 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA


FIC to reduce capitalization

FIC Global Inc (大眾投控), a holding company engaged mainly in the manufacture of electronic devices, yesterday said its board has approved a plan to reduce its capitalization with the aim of offsetting accumulated losses. The Taipei-headquartered company is to cut its paid-in capital by 50 percent from NT$3.87 billion to NT$1.93 billion (US$132.5 million to US$66 million), it said in a filing with the Taiwan Stock Exchange. At the end of last year, the company had accumulated net losses of NT$1.92 billion and 380.68 million issued shares. FIC shares shed 2.28 percent to close at NT$7.3 in Taipei trading yesterday before the announcement, underperforming the broader market.


Earnings decline 90 percent

Securities companies reported a month-on-month decline of more than 90 percent in earnings for last month as a result of the six-day Lunar New Year holiday, Taiwan Stock Exchange data showed. The exchange said the sharp drop in earnings also reflected caution among investors, who were concerned about volatility on Wall Street amid rising fears over more interest rate increases in the US. Securities firms reported NT$427.63 million in net profit last month, down 91.76 percent from January, when their earnings stood at NT$5.19 billion, the data showed. Due to the six-day holiday, there were only 15 trading sessions on the stock market last month, which lowered turnover by 39.75 percent from a month earlier, the data showed. In the first two months of the year, securities houses reported NT$5.84 billion in net profit, up 21.7 percent from the previous year largely on a 25 percent increase in turnover in January, when their earnings rose 45.44 percent year-on-year. Last year’s Lunar New Year holiday was in January.


Record dividend announced

Taiwan Sakura Corp (台灣櫻花), which makes cooking appliances and water heaters, yesterday said its board has agreed to distribute a cash dividend of NT$2.6, a company filing with the stock exchange said. The proposed payout, if approved by shareholders on June 13 at the annual meeting in Taichung, would be the highest dividend in the company’s history, data showed. The company reported a net profit of NT$720.19 million for the whole of last year, a 2.7 percent year-on-year increase from NT$701.01 million, with sales edging up 0.7 percent to NT$5.64 billion from NT$5.6 billion. Earnings per share were NT$3.29 over the period, compared with NT$2.75 the previous year. Based on the company’s closing price of NT$37.7 yesterday, the dividend yield would be about 6.9 percent.


Flexium to issue bonds

Flexible printed circuit board supplier Flexium Interconnect Inc (台郡科技) yesterday submitted a new fundraising program to the Securities and Futures Bureau. It plans to issue US$1.2 billion of corporate bonds for overseas investors, following in the steps of local rival Career Technology Co (嘉聯益). Flexium said it plans to invest NT$9.4 billion on new products. Career raised NT$2.92 billion by issuing 76.84 million new shares last week. Metal casing supplier Catcher Technology Co (可成科技) announced that it would invest NT$1.12 billion to acquire a 7.42 percent stake in Career as part of its vertical integration strategy. Flexium shares edged up 0.46 percent yesterday to close at NT$109.5 in Taipei trading.

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