Down jacket and garment maker Quang Viet Enterprise Co (廣越) on Friday reported record profit for last year and said that earnings could climb even higher this year.
Net income grew 30.89 percent year-on-year to NT$1.01 billion (US$33.62 million) last year, the highest in the company’s history, and earnings per share rose 30.89 percent to NT$9.73, the highest since it was listed on the main bourse in 2016, Quang Viet said in an e-mailed statement.
While consolidated revenue increased 22.43 percent year-on-year to a record NT$16.26 billion last year, gross margin decreased 0.99 percentage points to 15.65 percent and operating margin improved 0.17 percentage points to 8.5 percent, the company said.
In response to strong earnings last year, the company’s board of directors approved a cash dividend of NT$7.5 per common share, representing a payout ratio of 77 percent, it said.
Based on the company’s closing stock price of NT$138.5 on Friday, the proposed cash dividends suggest a yield of 5.42 percent.
Quang Viet said the COVID-19 outbreak did not significantly affect its Chinese operations, as its factories have returned to about 80 to 90 percent of production capacity.
The company said it remained optimistic about this year’s business outlook on the back of an upswing in the average selling prices, a better product portfolio and contributions from subsidiary Top One Down & Feather Co (尚弘羽絨).
Separately, textile and garment manufacturer Eclat Textile Co (儒鴻) on Thursday reported net income of NT$4.299 billion for last year, down 1.8 percent from 2018, due to higher operating expenses and foreign exchange losses in the fourth quarter of last year.
Its net income last year reached the second-highest level in the company’s history, with earnings per share of NT$15.68.
The company said its board of directors proposed a cash dividend of NT$11 per share, suggesting a payout ratio of 70.15 percent and a dividend yield of 2.99 percent, compared with its closing share price of NT$367.5 on Thursday.
Eclat said the ongoing COVID-19 outbreak has disrupted its raw material suppliers in China, but the company is seeking alternative suppliers outside of China, expecting capacity to improve next month.
Taishin Securities Investment Advisory Co (台新投顧) said in a note on Friday that Eclat this year would continue to benefit from supply chain consolidations at major brand clients’ — such as Nike Inc and Lululemon Athletica Inc — meaning that big suppliers such as Eclat would become bigger.
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