Tue, Mar 26, 2019 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with CNA

AUTO PARTS

Hiroca income falls 29.58%

Automotive components maker Hiroca Holdings Ltd (廣華控股) yesterday reported net income of NT$546.11 million (US$17.71 million) for last year, down 29.58 percent from a year earlier due to higher operating expenses, impairment charges and foreign-exchange losses. Earnings per share were NT$6.51. Cumulative sales increased 1.19 percent year-on-year to NT$8.06 billion. Hiroca, which produces automotive interior trim parts, as well as plastic, fabric and leather decorations, said its board has proposed distributing a cash dividend of NT$3.5 per share, which represents a payout ratio of 53.8 percent. With the company’s shares yesterday closing at NT$77.3 in Taipei trading, the proposed dividend suggests a yield of 4.53 percent.

SHIPPING

Yang Ming still in the red

Yang Ming Marine Transport Corp (陽明海運) yesterday said its volumes for last year increased 11 percent year-on-year to 5.23 million twenty-foot-equivalent units and consolidated revenue rose 8.21 percent to NT$141.83 billion, but the company was still in the red, with a net loss of NT$6.59 billion, or losses per share of NT$2.53. The company attributed the losses to higher global bunker fuel prices, which increased by 31.17 percent compared with the previous year.

LIGHTING

China Electric buys building

China Electric Manufacturing Corp (中國電器), which sells lighting products under the TOA (東亞) brand, yesterday said its property development subsidiary has reached an agreement with Hong Kong-based Best Combo Ltd (盛至) to purchase an office building in Taipei’s Neihu District (內湖) for NT$1.45 billion. The building is being used by Next TV (壹電視). Meanwhile, the company said it is planning a capital reduction scheme to adjust its capital structure and increase shareholder returns. China Electric plans to reduce its paid-in capital by 10 percent to NT$398 million, while returning NT$1 per share to shareholders, as well as a proposed cash dividend of NT$0.15 per share, it said.

BANKING

Subsidiaries to be merged

King’s Town Bank Co Ltd (京城銀行) yesterday said its board of directors has approved a plan to merge two wholly owned subsidiaries to expand customer services, strengthen customer protection and integrate resources to achieve synergies. King’s Town said in a regulatory filing that the integration of Tainan Life Insurance Agent Co Ltd (台南人身保險代理人) and Fu Chen Property Insurance Agent Co Ltd (府城財產保險代理人) is expected to reduce operational costs and have a positive impact on net value and earnings per share. The effective date of the merger has been set for June 3, King’s Town said.

ECONOMY

GDP to grow at least 2%

GDP growth for this year is to remain above 2 percent due to firming domestic demand and investment, Taiwan Institute of Economic Research (台灣經濟研究院) president Chang Chien-yi (張建一) said. While Chang acknowledged that this year’s growth momentum would be weaker than last year, when growth was 2.63 percent, there are also positive developments that should keep growth from slumping below 2 percent. Chang said most domestic enterprises have prepared for the challenges, while the government’s policy of attracting overseas Taiwanese businesses to return to Taiwan is expected to spur domestic demand, he said.

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