Nova Technology Corp (朋億), which supplies chemical dispensing and waste chemical collection systems to chip and LCD companies, yesterday said net profit this year might outpace last year’s figure, as Chinese customers are accelerating new fab construction.
The strong growth in China was reflected in the company’s financial performance last quarter, when China operations generated 80 percent of revenue totaling NT$1.29 billion (US$43.1 million), the company said in a statement.
That compares with a 61 percent share of last year’s revenue of NT$890 million.
“We are optimistic about this year’s outlook. As Chinese semiconductor and LCD customers are gearing up to build new factories and new production lines, the company will benefit from their rapidly growing demand for equipment and related services,” Nova chairman Liang Chin-li (梁進利) said in a separate statement yesterday.
“A pickup in orders from and shipments to China will continue to drive the company’s growth in 2018,” Liang said. “For the full year of 2018, net profit is expected to be stronger than last year, based on orders at hand and messages from customers.”
Nova’s net profit last year climbed to a record NT$447 million, soaring 69 percent from NT$264 million in 2016. That translated into earnings per share of NT$15.07, up from NT$9.83.
Revenue also jumped 26 percent to a new high of NT$3.34 billion last year from NT$2.65 billion, with half of last year’s revenue coming from semiconductor equipment, the company said.
China is to aggressively increase its fab equipment spending through next year — 57 percent annually this year and 60 percent next year — to support fab projects from overseas and domestic companies, SEMI said in a report in March.
The surge in spending would place China ahead of South Korea as the top spender next year, when South Korea is expected to spend US$16 billion, SEMI said.
Nova counts Semiconductor Manufacturing International Corp (中芯) and United Microelectronics Corp (UMC, 聯電) as its major customers.
Both companies are expanding capacity in Beijing and in Xiamen respectively this year.
Nova has also clinched supply contracts from two of China’s top three memory chip manufacturers, one of which is Fujian Jin Hua Integrated Circuit (JHICC, 晉華電子).
The Jhubei (竹北), Hsinchu County-based company yesterday said that shareholders gave the go-ahead to the proposal of distributing a cash dividend of NT$10 per common share, representing a 66 percent payout ratio.
The distribution meant 5.42 percent yield compared with the stock’s closing price of NT$184.5 on the Taipei Exchange yesterday. Nova shares surged 2.5 percent yesterday, outperforming the TPEX’s gain of 0.69 percent.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
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
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s