More CPC payment options
State-run oil refiner CPC Corp, Taiwan (CPC, 台灣中油) yesterday said it would today begin providing digital wallet services by three major international mobile payment systems — Apple Pay, Samsung Pay and Android Pay — at all 600 gas stations run directly by the company in Taiwan. The service is expanding from a trial run that began in April at 38 CPC gas stations in Taipei, the company said. Consumers simply need to tap their near-field communication-enabled mobile phones to make payments, it added.
CHT unit to see revenue rise
Chunghwa Telecom Co (CHT, 中華電信) yesterday said its cybersecurity unit — CHT Security Co Ltd (中華資安) — would see revenue grow 50 percent this year and aims to achieve annual sales of NT$3 billion (US$100.1 million) in five years, thanks to growing investment from local corporations to curb malware attacks. CHT Security, which was spun off early this year, plans to expand its headcount by 66 percent from 60 to 100 and launch an initial public offering in about two years, Chunghwa Telecom said. Separately yesterday, Far EasTone Telecommunications Co Ltd (遠傳電信) said it aims to triple its cybersecurity revenue to about NT$600 million per year by 2020.
Mosel Vitelic profit surges
Mosel Vitelic Inc (茂矽), which provides wafer foundry services and manufactures solar cells, yesterday reported net profit of NT$32 million for April, up 346.15 percent year-on-year, with earnings per share of NT$0.27. Revenue also increased 21.22 percent annually to NT$151 million, the highest level in 46 months, on robust sales of metal-oxide-semiconductor field-effect transistors, which are used in applications such as electric vehicles and Internet of Things devices. The company released the figures after the Taiwan Stock Exchange requested that it disclose its latest results, as its stock price has been volatile in recent sessions.
Formosa I, Swancor ink deal
Formosa I Wind Power Co (海洋風電) yesterday signed an operation and maintenance service agreement with Swancor Renewable Energy Co Ltd (上緯新能源) as the wind power company plans to complete second-phase development of a project off the coast of Miaoli County next year. The first phase of the project became operational in April last year. Swancor Renewable is a subsidiary of Swancor Holding Co Ltd (上緯), which owns a 31 percent stake in Formosa I, while Danish energy company Orsted AS and Sydney-based Macquarie Capital Ltd hold stakes of 35 percent and 50 percent respectively in the joint venture.
Turnover hits 10-year high
The Taipei Exchange yesterday saw daily turnover hit NT$68.783 billion, its highest level in 10 years, led by the strong performance of passive component, biotechnology and construction stocks. On a daily basis, the turnover hit the highest level since July 27, 2007, the exchange said. As of Wednesday, average daily turnover this year had reached NT$37.122 billion, an increase of 18.85 percent from an average of NT$31.234 billion for the whole of last year, the exchange said. The benchmark index on the Taipei Exchange rose 0.45 percent to close at 155.98 points, retreating from a 10-year intraday high of 157.27 and rounding out last month’s performance with a monthly increase of 4.85 percent, exchange data showed.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a