Distributor’s Q4 profits drop
WT Microelectronics Co (文曄科技) yesterday posted NT$591 million (US$19.16 million) in net profits for the fourth quarter last year, a 40 percent drop from the NT$988 million it posted in the previous quarter. Earnings per share dipped to NT$1.6 from NT$1.79. Net profits for all of last year were up 1.33 percent to NT$2.78 billion, or NT$5.02 per share, from NT$2.52 billion, or NT$5.26 per share, in 2017. The chip distributor told an investor conference that revenue would fall by from 18 percent to 24 percent this quarter to between NT$65 billion and NT$70 billion due to dwindling demand for its communications segment, mainly smartphones. More than half of its NT$85.76 billion revenue came from the segment. Gross margin would drop to between 3.3 and 3.5 percent this quarter, from 3.89 percent last quarter, it said.
Avary profits soar 52%
Zhen Ding Technology Holding Ltd (臻鼎), which makes printed circuit boards for Apple Inc’s iPhones, yesterday said its Chinese subsidiary, Avary Holding (Shenzhen) Co Ltd (鵬鼎控股深圳), made 2.77 billion yuan (US$409.3 million) in net profits last year, a 51.72 percent jump from 1.83 billion yuan in 2017. That translated into earnings per share of 1.3 yuan last year, up from 0.93 yuan the previous year. Revenue only rose 8.08 percent to 25.85 billion yuan, from 23.92 billion yuan in 2017. Zhen Ding holds an 80.91 percent stake in Avary.
Kinsus net profis falls 16%
Chip substrate supplier Kinsus Interconnect Technology Corp (景碩) on Monday reported NT$349 million in net profits for last year, a 16 percent drop from 2017’s NT$$416 million. Earnings per share dropped to NT$0.78 from NT$1.1. Revenue last year rose 6.23 percent to NT$23.73 billion, from NT$22.34 billion in 2017. The board of directors approved the distribution of NT$1.5 per common share, more than NT$1.2 per share proposed by the management. Kinsus said it would pay NT$676.26 million in cash divident to shareholders, up from its original plan of NT$541 million. The dividend is subject to shareholders’ approval at the annual meeting scheduled for May 29.
Cathay Life looks at water
Cathay Financial Holding Co (國泰金控), the nation’s biggest financial service provider by assets, yesterday said Cathay Life Insurance Co (國泰人壽) planned to invest as much as NT$470 million in cash to a newly created water treatment company. The investment would give the insurance subsidiary a 30 percent share of the company, it said in a filing with the Taiwan Stock Exchange.
Investors stay on sidelines
The TAIEX closed little changed yesterday after moving in a narrow range, as many investors remained cautious about upcoming US-China trade talks, dealers said. Large-cap stocks in the bellwether electronics sector appeared mixed, while buying in select old economy stocks, in particular in the cement and textile sectors, helped stabilize the market throughout the session, they said. The TAIEX ended up 6.98 points, or 0.07 percent, at 10,152.26. Turnover totaled NT$101.39 billion. “Following its strong showing in recent sessions, the main board has turned technically healthier, in particular after the TAIEX jumped past 10,148 points today,” Concord Securities (康和證券) analyst Kerry Huang said.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
SUPPLY CONSTRAINTS: The transferred orders might not provide an immediate revenue boost given local chipmakers’ high utilization rates, a senior analyst said Shares of local contract chipmakers yesterday rose as much as the 10 percent daily limit, as investors bet on orders being transferred from Semiconductor Manufacturing International Corp (SMIC, 中芯國際) after the US imposed export restrictions on the Chinese chipmaker. United Microelectronics Corp (UMC, 聯電) shares soared 10 percent to close at NT$27.5 as 380 million shares changed hands on the Taiwan Stock Exchange. UMC is the world’s No. 3 foundry by revenue, followed by SMIC, according to data from market researcher TrendForce Corp (集邦科技). UMC has product and customer portfolios similar to those of SMIC, TrendForce said, adding that UMC offers 14-nanometer and