TPK Holdings’ monthly revenue growth pushes company past quarterly target

By Lisa Wang  /  Staff reporter

Tue, Apr 08, 2014 - Page 13

TPK Holdings Co (宸鴻), which counts Apple Inc as its biggest client, yesterday posted nearly 14 percent sequential growth in revenue for last month, helping to boost the company’s last quarter revenue to exceed its target.

Revenue expanded to NT$7.99 billion (US$264 million) last month, compared with NT$7.03 billion in February, marking the first rise since January, according to a company statement. The figure was an annual decline of 49.33 percent from NT$15.77 billion.

The monthly growth is in line with company chief financial executive Freddie Liu’s (劉詩亮) expectation as demand rebounds and there was a rise in working days last month.

That brought last quarter’s revenue to NT$26.62 billion, surpassing TPK’s forecast of NT$25.13 billion.

That quarterly revenue represented a 36 percent quarterly contraction, from the three-year low of NT$41.88 billion in the fourth quarter last year. TPK has warned that seasonal weak demand would cut revenue.

TPK expected to swing into the black last quarter after posting first quarterly loss for the fourth quarter last year due to massive asset impairment.

TPK is scheduled to hold an investor conference on April 22 to reveal detailed financial figures.

Separately, local LCD panel maker HannStar Display Corp (瀚宇彩晶) yesterday dismissed the local Economics Daily News’ report that Chinese touch panel maker O-film Tech Co Ltd (歐菲光) intends to subscribe HannStar’s new share offering via private placement for NT$3 billion roughly.

The report said O-film aimed to own 10 percent stake in HannStar to secure LCD panel supply.

“It is pure media speculation,” HannStar spokesman Justine Chien (簡宏毅) said in a statement submitted to the Taiwan Stock Exchange.

Last month, HannStar’s management proposed to sell 300 million new common shares via private placement to facilitate strategic partnership, or to replenish operating capital and repay debts.

The share sale will be discussed during the annual shareholder’s meeting on June 12.

O-film undercut rivals’ orders by offering prices that were 20 percent lower last year, local touch panel maker Young Fast Optoelectronics Co Ltd (洋華光電) said.

Separately, LCD panel maker Chunghwa Picture Tubs Co Ltd (中華映管) yesterday said revenue grew 21.6 percent to NT$5.69 billion last month from February’s NT$4.67 billion, thanks to an increase in shipments.

In the first three months, revenue slid 3.1 percent to NT$14.97 billion, compared with NT$15.45 billion in the prior quarter.

Shipment of middle-sized flat panels for tablets jumped 36.6 percent to 153,000 units last month, while small-sized panels for handset devices rose 19.4 percent month-on-month to 38.82 million units from 32.52 million units during the same period of time.

Shares of TPK soared 2.17 percent to NT$188 yesterday, outperforming the TAIEX, which lost 0.14 percent. HannStar shares remained the same at NT$11.6.