Value Valves Co Ltd (捷流閥業) is planning to issue 3.542 million new shares before its debut on the Taipei Exchange next month, the valve supplier said at a business outlook presentation on Thursday last week in Taipei.
The rights issue is expected to boost the company’s capital to NT$391 million (US$12.8 million), from NT$355.9 million, said the company, which currently trades its shares on the preparatory Emerging Stock Board.
Established in 1980, Value Valves manufactures valves in various specifications, with butterfly valves being its major revenue contributor and accounting for about two-thirds of total sales.
Downstream applications of the company’s products extend to various sectors, ranging from energy and gas and semiconductor to industrial sectors.
Cumulative revenue in the first 10 months increased 28.29 percent year-on-year to NT$2.01 billion, which was higher than NT$1.84 billion for the whole of last year, the company said in a statement.
Value Valves attributed the increase to rising demand for valve products from the petrochemical industries in the US (shale oil and ethane) and China (crude-oil-to-chemicals projects), as well as from the shipping industry in China due to tough environmental protection regulations.
The company’s net profit in the first three quarters grew 39.78 percent from a year earlier to NT$220.122 million, with earnings per share of NT$6.18, the highest for the same period on record.
Gross margin and operating margin were 31.08 percent and 16.62 percent in the first three quarters, up from 30.43 percent and 16.31 percent respectively.
“Even though the global economy this year is full of many uncertainties, shipments of the company’s valve products are still thriving thanks to increased environmental awareness, increasingly stringent safety standards and the global manufacturing relocation amid the Sino-US trade war,” Value Valves said in the statement.
Value Valves business department general manager Chien Pei-ling (錢佩玲) said at the presentation that the three major growth drivers next year would come from the petrochemical industry, the shipbuilding industry and the returning Taiwanese businesses.
The company has secured orders from Chinese oil giants China Petroleum & Chemical Corp (中國石油化工) and China National Offshore Oil Corp (中國海洋石油), as well as orders from Taiwan Semiconductor Manufacturing Co (台積電), Micron Technology Inc and Google, the Chinese-language Liberty Times (the sister newspaper of the Taipei Times) reported yesterday, citing Chien.
As investors are concerned about the company’s dividend distribution policy, Value Valves chairman Yang Tai-chung (楊大中) said that future capital expenditures are expected to be significantly lower due to the completion of factory renovations, therefore the company would strive to raise its dividend payout ratio to 70 percent, from 50 percent, the Liberty Times reported.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s