Sinbon plans cash dividend
Sinbon Electronics Co (信邦電子), which produces cables, connectors and modems, yesterday said its board of directors had approved a proposal to distribute a cash dividend of NT$4.5 per common share based on last year’s earnings per share of NT$6.26. The proposed dividend, if approved by shareholders on June 6, would represent a payout ratio of 71.88 percent. With Sinbon shares yesterday closing at NT$90.3 in Taipei, the proposed dividend translates to a yield of 4.98 percent. The company’s consolidated sales for the whole of last year rose 19.78 percent to NT$15.65 billion (US$506.5 million), the highest in its history. Net profit grew 15.25 percent annually to NT$1.41 billion, also the highest on record.
King Yuan approves payout
IC testing service provider King Yuan Electronics Co (京元電) yesterday said that its board of directors had approved a proposal to distribute a cash dividend of NT$1.35 per common share, based on last year’s earnings per share of NT$1.47. The distribution is subject to shareholders’ approval at the company’s annual general meeting scheduled for June 6. The company posted a 5.73 percent annual increase in revenue for last year at NT$20.82 billion, but net profit decreased 19.7 percent to NT$1.79 billion, affected by its acquisition of ailing Dawning Leading Technology Inc (東琳) in November last year and a slowdown in the semiconductor industry in the second half of the year.
Topoint profit rises 7.3%
Topoint Technology Co Ltd (尖點科技), a manufacturer and supplier of precision processing tools for printed circuit boards, yesterday reported that its net profit for last year increased 7.3 percent year-on-year to NT$254 million, or earnings per share of NT$1.69. Consolidated revenue was flat from a year earlier at NT$3.28 billion. The company said that its board of directors had agreed to distribute a cash dividend of NT$1.2 per share, higher than the NT$0.4 it paid last year. The company is scheduled to hold its annual shareholders’ meeting on June 12 to sign off on the dividend proposal.
Tong Yang profit plunges
Automotive metal sheet and bumper manufacturer Tong Yang Industry Co (東陽) yesterday reported NT$114 million in pretax profit for last month, down 55.12 percent from the previous month and 27.84 percent from a year earlier. In the first two months, cumulative pretax profit totaled NT$368 million, down 9.1 percent year-on-year. That translated into pretax earnings per share of NT$0.65, the company said in a statement. Revenue in the first two months decreased 16.1 percent year-on-year to NT$3.34 billion, mostly due to weak vehicle sales in China and fewer working days.
Makalot profit up 53.5%
Makalot Industrial Co Ltd (聚陽) yesterday reported that pretax profit for the first two months of the year rose 53.5 percent to NT$382.12 million from NT$248.86 million during the same period last year, thanks to rising shipments and better product prices. That translates into earnings per share of NT$1.82 based on the company’s 209 million outstanding shares, the company said in a filing with the Taiwan Stock Exchange. The manufacturer of ready-to-wear apparel and functional clothing said that consolidated revenue totaled NT$4.22 billion in the first two months, a 28.7 percent increase from NT$3.28 billion a year earlier.
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