Tue, Jun 11, 2019 - Page 11 News List

GSD Technologies bullish about the Chinese market

By Kwan Shin-han  /  Staff reporter

GSD Technologies Co Ltd (基士德), which manufactures water pumps and blowers in China, yesterday said that it is positive about this and next quarter, as Chinese purchases of wastewater treatment facilities and services is on the rise.

“Orders for this quarter are better than last quarter as our Chinese business remains robust,” a GSD official, who declined to be named, told the Taipei Times by telephone.

The company’s sales for last month climbed 20.94 percent year-on-year and 26.5 percent month-on-month to NT$185.42 million (US$5.9 million).

However, cumulative sales in the first five months decreased 2.56 percent year-on-year to NT$726.51 million owing to the US-China trade dispute, which indirectly affected the Chinese market, the firm said.

The company is seeing some signs of a lessened impact from the trade dispute and expects its business performance in the first half of this year to be similar to the same period last year, although order visibility for the third quarter remains ambiguous, the official said.

GSD operates plants in Pinghu and Yangzhou, China.

China contributed more than 90 percent of sales last year, it said.

In Taiwan, the company established a research center with National Cheng Kung University earlier this month, which aims to focus on energy-saving technology for wastewater treatment, improve water pump efficiency and create a database of micro-organisms in the next three to five years.

That came after the company in March launched its Taiwan branch to develop smart water treatment facilities, it said.

The company’s shareholders on Thursday last week approved a plan to distribute a cash dividend of NT$3.8 per share this year, representing a payout ratio of 55.39 percent based on last year’s earnings per share of NT$6.86.

The company reported earnings per share of NT$1.28 in the first quarter, down from NT$1.69 a year earlier, while gross margin decreased 0.83 percentage points to 38.66 percent.

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