Highwealth Construction Corp (興富發) expects better earnings this year, as some presale projects are about to be completed, allowing it to realize profits.
The Taipei-based developer reported its optimistic outlook after selling NT$60 billion (US$2 billion) of presale and newly completed housing units last year, saying that its presale volume this year is expected to reach NT$40 billion to NT$50 billion.
Inventory digestion drove 20 percent of sales last year, while presale projects underpinned 80 percent, enabling Highwealth to post profits for the next two to three years, company founder Cheng Chin-tien (鄭欽天) said.
Last week, the company sold a 1,625.94 ping (5,375.02m2) plot of land in Taipei’s Nangang District (南港) to YeaShin International Development Co (亞昕), Shin Ruen Development Co (新潤興業) and Hiyes International Co (海悅國際開發) for NT$1.79 billion.
The firm decided to make a quick profit on the plot, rather than wait a few more years for it to become even more profitable, Highwealth spokesman Liao Chao-hsiung (廖昭雄) said, adding that major property developers are buying up plots in Nangang, as the Taipei City Government plans to build a business district there after finishing one in Xinyi District (信義).
Cheng said that he has told his employees to aim for NT$100 billion in sales this year, as the property market is expected to thrive amid a stable economy, a low-interest environment and ongoing capital repatriation.
For the whole of last year, revenue totaled NT$23.79 billion, while earnings per share stood at NT$2.06 in the first three quarters — a decline of more than 45 percent from 2018.
The property market has a labor shortage due to a rapidly growing demand for factories and office space as Taiwanese manufacturers return home from China to avoid US tariffs on China-made goods, Cheng said.
Highwealth plans to introduce new construction methods that increase the use of prefab building materials and a significant reduction in labor, Cheng added.
The company would also tap further into the hospitality and retail sectors, he said.
Over the next two to three years, Highwealth expects to open a department store in Kaohsiung, as well as launch hotels in Tainan and New Taipei City, Cheng said, adding that the Tainan hotel would have 120 guestrooms, while the hot spring resort hotel in New Taipei City would have 202 rooms.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be