Tue, Feb 26, 2019 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with agencies

STOCK MARKET

Shares extend momentum

Shares in Taiwan yesterday extended momentum from the previous session to end higher as concerns over trade tensions between the US and China diminished after the latest round of negotiations, dealers said. The TAIEX closed up 68.01 points, or 0.66 percent, at 10,390.93, on turnover of NT$133.563 billion (US$4.34 billion). Foreign institutional investors bought a net NT$12.38 billion of shares, Taiwan Stock Exchange data showed. The local bourse has seized a good opportunity to move even higher and challenge the strong technical resistance of about 10,500 in the short term with turnover regularly NT$130 billion or higher, analysts said.

ECONOMY

GDP at least 2%: DGBAS

While Taiwan faces the challenge of slowing global economic growth, it is expected to maintain GDP growth of no less than 2 percent this year, Directorate-General of Budget, Accounting and Statistics (DGBAS) Minister Chu Tzer-ming (朱澤民) told a meeting of the Legislative Yuan’s Finance Committee yesterday. Judging from current economic data, there is no problem for Taiwan to report 2 percent or higher GDP growth this year, Chu said. On Feb. 13, the DGBAS lowered its growth forecast to 2.27 percent from an earlier estimate of a 2.41 percent, compared with an anticipated 2.63 percent increase for last year.

ELECTRONICS

Greatek approves dividend

Greatek Electronics Inc (超豐), a consumer integrated-circuit testing and packaging firm, yesterday said its board had approved a proposal to distribute a cash dividend of NT$2.7 per share, lower than the NT$3 it paid last year. The proposed dividend, if approved by shareholders on May 24, would represent a payout ratio of 64.59 percent based on last year’s earnings per share of NT$4.18. While last year’s consolidated revenue hit a record NT$12.36 billion, up 3.4 percent year-on-year, net profit fell 5.3 percent to NT$2.38 billion on sliding gross and operating margins.

VPN PROVIDERS

Chief Telecom dividend rises

Chief Telecom Inc (是方), a virtual private network (VPN) service provider, plans to distribute a cash dividend of NT$6.5 per share, plus NT$1 per share from surplus capital, to shareholders, compared with the NT$4.97 cash dividend it paid last year. The higher payout ratio reflects the company’s record earnings and sales last year, Chief Telecom said on Friday. Net profit last year increased 26 percent annually to NT$480 million, with earnings per share of NT$7.41, while revenue grew 6.87 percent to NT$2.27 billion, the company said. Gross margin improved by 14.7 percentage points to 39.3 percent, it said.

INSURERS

Ping An mulls debut

Ping An Insurance (Group) Co (中國平安保險), China’s largest insurer by market value, is gearing up for an initial public offering of its OneConnect (金融壹賬通) unit that could value the financial management portal at about US$8 billion, people familiar with the matter said. Ping An is seeking to list OneConnect in Hong Kong as soon as the second half of this year, one of the people said. The share sale could raise roughly US$1 billion, the people said. Gareth Hewett, a spokesman for OneConnect, declined to comment. The company provides cloud computing and other technology services to small and medium-sized financial institutions.

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