Taiwan Paiho Ltd (台灣百和) yesterday said its new factory in Vietnam would start mass production next month, which is expected to raise its Vietnamese output by 20 percent later this year.
“Production lines at our factory in the Le Minh Xuan 3 Industrial Park recently started pilot runs and are to begin mass production next month to meet growing demand in the region,” a Paiho public relations official, who declined to be named, said by telephone.
“We expect the second half of the year to outpace the first half as the Tokyo Olympics draw near, and orders for shoelaces are likely to grow as our clients release new shoe designs,” she said.
In the first half of the year, net profit attributable to the parent company, which makes shoelaces, touch fasteners and elastics for shoes and clothes, climbed 16.81 percent year-on-year to NT$798.26 million (US$25.72 million), Paiho reported last week.
Earnings per share increased from NT$2.29 a year earlier to NT$2.68, but gross margin decreased 2.13 percentage points to 35.1 percent due to low utilization rates for four-way elastics products, it said.
Revenue rose 34.27 percent to NT$7.91 billion, but would have only increased 12.7 percent if real-estate sales were omitted, it said.
“The increase in sales and profits are due to contribution from our top 10 clients, which climbed 5 percentage points to 63 percent in the first half of the year,” the official said.
The company’s major customers include Adidas AG, Nike Inc, Under Armour Inc, New Balance Athletic Shoe Inc, Reebok International Ltd and Puma AG, analysts said.
Paiho has factories in Taiwan, Vietnam, Indonesia and Dongguan, Wuxi and Jiading in China.
The Indonesian operations turned profitable in January, the company said.
Shoelaces accounted for 54 percent of total sales in the first six months, touch fasteners made up 15.9 percent, elastics contributed 13 percent and molded hooks came in at 9 percent, it said.
The official said new four-way stretchable elastic and woven jacquard fabric products have higher average selling prices and a good margin outlook, although they only accounted for 2 percent of total sales in the first half of the year.
Paiho has been expanding its customer base by reaching out to the aviation and virtual reality sectors, she said.
The company also expects several real-estate development projects and the sale of some parking lots to contribute to sales later this year or in the second quarter of next year, she added.
Paiho shares yesterday closed up 4.11 percent at NT$96.3 in Taipei trading. They have skyrocketed 95.33 percent so far this year.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies advanced chips to Nvidia Corp and Apple Inc, yesterday reported NT$1.046 trillion (US$33.1 billion) in revenue for last quarter, driven by constantly strong demand for artificial intelligence (AI) chips, falling in the upper end of its forecast. Based on TSMC’s financial guidance, revenue would expand about 22 percent sequentially to the range from US$32.2 billion to US$33.4 billion during the final quarter of 2024, it told investors in October last year. Last year in total, revenue jumped 31.61 percent to NT$3.81 trillion, compared with NT$2.89 trillion generated in the year before, according to
PRECEDENTED TIMES: In news that surely does not shock, AI and tech exports drove a banner for exports last year as Taiwan’s economic growth experienced a flood tide Taiwan’s exports delivered a blockbuster finish to last year with last month’s shipments rising at the second-highest pace on record as demand for artificial intelligence (AI) hardware and advanced computing remained strong, the Ministry of Finance said yesterday. Exports surged 43.4 percent from a year earlier to US$62.48 billion last month, extending growth to 26 consecutive months. Imports climbed 14.9 percent to US$43.04 billion, the second-highest monthly level historically, resulting in a trade surplus of US$19.43 billion — more than double that of the year before. Department of Statistics Director-General Beatrice Tsai (蔡美娜) described the performance as “surprisingly outstanding,” forecasting export growth
RSS