The outlook this year for shoemaker Fulgent Sun International Holding Co (鈺齊國際) is expected to remain positive, thanks to product mix optimization, bigger economies of scale and effective cost control, Taishin Securities Investment Advisory Co (台新投顧) said.
The company’s strong growth momentum is likely to continue this quarter after it reported record-high revenue and operating profit in the final quarter of last year, Taishin said in a report.
Fulgent Sun supplies sports shoes and functional outdoor shoes to global brands on a contract basis.
The company on Wednesday last week reported revenue of NT$3.46 billion (US$115.5 million) for the fourth quarter of last year, up 28.42 percent from the same period the previous year.
Operating profit surged by 93.82 percent year-on-year to NT$530.97 million, with gross margin and operating margin improving to 23.5 percent and 15.3 percent respectively, the company said in a statement.
While net profit increased 92.3 percent year-on-year to NT$371.42 million, that was a 8.5 percent quarter-on-quarter decline due to foreign-exchange losses.
“Due to rapid depreciation of the US dollar at the end of the fourth quarter, foreign-exchange losses were as high as NT$67.217 million. Although most of the losses were unrealized, it still shaved about NT$0.39 from earnings per share, resulting in earnings per share of NT$2.14 last quarter, down from NT$2.44 the previous quarter,” the statement said.
For the whole of last year, revenue increased 27.5 percent year-on-year to NT$12.84 billion, operating profit grew 74.6 percent to NT$1.46 billion and net profit advanced 72.2 percent to NT$1.28 billion, or earnings per share of NT$7.81.
Gross margin improved by 1.7 percentage points to 19.7 percent and operating margin rose 3 percentage points to 11.3 percent, the company said.
Fulgent Sun operates three plants in China, two in Vietnam and one in Cambodia, accounting for 34 percent, 42 percent and 24 percent of last year’s production capacity respectively.
As the company continues to add capacity to its facilities outside China, it expects its average tax rate to decline due to a zero rate in Cambodia, Taishin said in the report.
With increased shipments to clients and better control of operating expenses, revenue this year is forecast to increase by 15 to 20 percent year-on-year, while earnings per share are expected to rise to NT$9.52, Taishin said.
Meanwhile, fellow contract shoemaker Feng Tay Enterprises Co (豐泰企業) is this year expected to post an 8.1 percent year-on-year increase in revenue, Yuanta Securities Investment Consulting Co (元大投顧) said in a client note.
Yuanta attributed the growth to an increase in average selling prices, a better product mix and a bigger sales contribution from basketball shoes, driven by Nike Inc’s robust sales growth as well as the Air Jordan 1.
Feng Tay on Jan. 10 posted revenue of NT$73.94 for last year, up 14.63 percent year-on-year.
Operating profit was NT$8.37 billion and net profit NT$6.24 billion, or earnings per share of NT$8.49, the company said.
DEVELOPING TALENT: The electronics contractor is looking to recruit people to work in core tech fields and emerging industries like electric cars and robotics Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, has launched a recruitment drive, offering a monthly salary of no less than NT$45,000 (US$1,485) to university graduates. For those with a master’s degree, the starting pay would be NT$52,000 per month at the minimum, while doctorate degree holders would receive at least NT$60,000 a month, Hon Hai said a statement issued early this week. The latest recruitment drive is aimed at attracting talent in core technology fields — artificial intelligence, semiconductors and next-generation mobile communications — and emerging industries — electric vehicles, digital healthcare and robotics, the
MRT TRAVEL FALLS: In February, ridership on the Taipei MRT System fell 8.96 percent from an average of 2.01 million per day in January Scooter sales jumped 13 percent last month as more commuters turned to two-wheelers to avoid public transportation amid the COVID-19 pandemic, the latest statistics showed. Sales expanded to 74,493 units last month, compared with 65,913 units in February, statistics released on Wednesday by Kwang Yang Motor Co (光陽工業) and the Ministry of Transportation and Communications showed. In the first quarter, aggregate sales slid 0.51 percent year-over-year to 186,627 units, from 187,580 units, data showed. Kwang Yang, the nation’s biggest scooter manufacturer, continued to lead the market by selling 24,136 vehicles last month, growing 6.12 percent from 20,785 units in the previous month, while
Asustek Computer Inc (華碩), the nation’s leading PC vendor, yesterday launched its first dual-screen gaming laptop powered by Intel Corp’s latest central processing units (CPUs). The PC manufacturer’s announcement closely followed the US chipmaker’s unveiling of its 10th Generation Core H-series, the fastest commercial mobile processors with speeds of up to 5 gigahertz. Although Asustek’s Zephyrus Duo 15, the highlight of its Republic of Gamers line, is not the company’s first laptop with two screens, it is its first designed specifically for gaming. Nestled between the primary display panel and the keyboard, the secondary display, which Asustek calls the ScreenPad Plus, is angled
NO ILL EFFECT: Last month’s data mainly reflected deals made in February, when the spread of COVID-19 was still relatively mild in Taiwan, housing brokers said Housing transactions in the six special municipalities totaled 19,824 units last month, up 7.8 percent from a year earlier, brokers said, citing government data. Last month’s data mainly reflected deals made in February, when the pinch of the COVID-19 pandemic was not yet evident, they said. Taoyuan posted the largest improvement, with housing transactions soaring 36.6 percent year-on-year to 3,676 units, local government data showed. Taiwan Realty Co (台灣房屋) attributed the pickup to the completion of two presale residential projects in the municipality. Houses in Taoyuan have increasingly gained in popularity in the past few year years due to relatively affordable home prices and