Wed, Feb 20, 2019 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA

CHIPMAKERS

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.

ELECTRONICS

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.

ELECTRONICS

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.

INVESTMENT

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.

STOCKS

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.

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