Wed, Jul 04, 2018 - Page 11 News List

Taiwan Business Quick Take

Staff writer

ELECTRONICS

HTC share price slumps

Shares of Taiwanese smartphone vendor HTC Corp yesterday fell 6.71 percent to close at NT$52.8, the lowest level since September 2015, after the company announced a day earlier that it would lay off about a quarter of its workforce by the end of September. “The layoff plan told investors that HTC will only depend on cuts in operating costs to maintain its bottom line instead of seeking more sales from its core smartphone business to turn a profit,” MasterLink Securities (元富證券) analyst Tom Tang (湯忠謙) said, adding that the company does not have a strategy to turn around its global smartphone business. “The cut in its workforce is expected to prevent first-quarter earnings from being eroded, which will allow the company to be profitable this year. It was no surprise that HTC shares moved lower today, but since the company’s book value per share still stands at around NT$66, its share price could soon obtain some technical support.”

BICYCLE MAKERS

EU logistics center planned

Giant Manufacturing Co Ltd (巨大機械) yesterday said it plans to spend 13.5 million euros (US$15.71 million) to build a logistics center in Lelystad, the Netherlands, as part of its effort to cope with growing demand for electric bicycles in European markets. The new facility, which would enhance the company’s service capabilities by integrating logistical and retail networks, is expected to create nearly 100 jobs over the coming three years, Giant said. Giant, the nation’s largest bicycle maker, sells more than 400,000 bicycles annually in Europe, company data showed.

ELECTRONICS

Asustek eyes market share

Asustek Computer Inc (華碩) hopes to raise its share of the local smartphone market from 19 to 20 percent by next month, the company said yesterday at a launch event for its ZenFone Live L1. The company said it hopes to take advantage of a lack of new product launches from its rivals next month. ZenFones have been recognized as one of the best value-for-money options by Taiwanese consumers and the company has led its peers in the domestic market for Android smartphones since April, the firm said, adding that the achievement was made at a time when telecoms have begun cutting handset subsidies, leading to declining sales between May and last month.

PCB INSPECTION

Machvision sales surge

Machvision Inc (牧德), a supplier of printed circuit board (PCB) inspection equipment, yesterday reported that sales last month rose 8.45 percent month-on-month and 144.18 percent year-on-year to NT$274 million (US$8.96 million), its highest monthly sales in the past 14 months. The company attributed the gain to strong growth in the Chinese market. The company expects average selling prices to rise as it launches a line of artificial intelligence-enhanced automated optical inspection products that would help customers prevent reports of false failures from dust contaminants and oxidation, it said.

BANKING

Chang Hwa fined NT$3m

The Financial Supervisory Commission yesterday fined Chang Hwa Bank (彰化銀行) NT$3 million for the acceptance of kickbacks at the state-run lender’s branch in Dongguan, China. The penalty follows a 300,000 yuan (US$45,139) fine imposed by the Chinese regulator last month. An employee at the Dongguan branch accepted about 100,000 yuan in kickbacks over two years.

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