Refiners cut prices more as oil prices continue to decline

CPC Corp, Taiwan (CPC, 台灣中油) yesterday announced price cuts of NT$0.9 per liter for gasoline and NT$1 per liter for diesel, effective today, as global crude oil prices continue to fall amid the COVID-19 pandemic. Based on CPC’s weighted oil price formula — composed of 70 percent Dubai crude and 30 percent Brent crude — its average crude oil costs fell to US$21.53 per barrel last week, from US$24.99 a week earlier. After factoring in the appreciation of the New Taiwan dollar, which was up NT$0.047 against the US dollar last week, fuel prices would be reduced by 11.18 percent this week, CPC said in a statement. From today, prices at CPC gas stations are to be NT$17.3, NT$18.8 and NT$20.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$14.4 per liter, the company said. The new gasoline prices are at the lowest levels for CPC in 17 years. Formosa Petrochemical Corp (台塑石化) also lowered its fuel prices by the same amount, cutting its 92, 95 and 98-octane unleaded gasoline prices to NT$17.3, NT$18.7 and NT$20.8 per liter respectively, with premium diesel dropping to NT$14.2 per liter.

By Chen Cheng-hui

Worldwide lockdowns squeeze local bicycle makers

With European and US cities under lockdown due to the COVID-19 pandemic, Taiwan’s two major bicycle makers, Giant Manufacturing Co Ltd (巨大機械) and Merida Industry Co Ltd (美利達), face huge uncertainties for shipments in the short term, Yuanta Securities Investment Consulting Co (元大投顧) said last week. “As 57 percent of Giant’s sales were generated by the EU and US markets last year, we expect shutdowns in EU and US cities this month and last month due to the COVID-19 outbreak to affect Giant’s sales and gross margin in the first half of this year,” Yuanta analyst Peggy Shih (施姵帆) said in a note on Tuesday. “Additionally, the increasing inventory of this year’s bike models in the first half of the year would likely defer shipments of next year’s models to the second half this year,” Shih said. As for Merida, “up to 81 percent of its sales for last year were from EU and US markets, higher than Giant’s 57 percent, and these markets are likely to see greater impact from COVID-19 due to city shutdowns in the short term,” Shih said in a separate note on Wednesday. Up to 70 percent of Giant’s manufacturing capacity is in China, and as its work resumption rate there last month recovered to as high as 90 percent, it faces no materials or logistical issues, Shih said. In comparison, Merida might face a component shortage issue due to virus-related disruptions in Japan and ASEAN markets, she said. Based on Yuanta’s estimates, Giant’s revenue for this year is forecast to decline 7.2 percent year-on-year to NT$58.89 billion (US$1.94 billion), and its gross margin could fall to 20.9 percent, from 21.5 percent a year earlier, while Merida’s revenue might drop 5.6 percent to NT$26.68 billion and gross margin could fall to 12.9 percent, from 13.2 percent last year. Last year, Giant shipped

By Chen Cheng-hui

Largan Precision posts record March revenue of more than NT$5.4 billion

Largan Precision Co (大立光) yesterday reported a 38.67 percent increase in consolidated revenue for last month from a year earlier to NT$5.44 billion (US$179.5 million), the highest level for March in the company’s history. Last month’s figure also grew 48.26 percent from February, ending three consecutive months of sequential losses, company data showed. ORDERS CONTINUE The Taichung-based company is the world’s largest supplier of handset camera lenses, focusing on high-end products for Apple Inc’s iPhone and Android phone vendors, such as Huawei Technologies Co (華為) and Samsung Electronics Co. Largan last month benefited from pull-in orders related to the iPhone SE2, Samsung’s Galaxy S20, Huawei’s P40 and other new handset models, analysts said. However, as the COVID-19 pandemic spans the world, revenue growth might weaken this month, they said. Largan’s 20-megapixel lenses and high-end models, which command higher prices, accounted for 20 to 30 percent of its total sales last month, while its 10-megapixel lenses made up 40 to 50 percent and 8-megapixel lenses 10 to 20 percent, it said in a statement. First-quarter consolidated revenue increased 34.52 percent from last year to NT$13.21 billion, higher than Capital Investment Management Corp’s (群益投顧) NT$11.94 billion estimate. However, revenue fell 28.02 percent from the previous quarter due to lower pull-in orders from Chinese phone brands amid the pandemic, as well as the low-season effect last quarter, Capital said in a note. Largan is to release its earnings results for the first quarter at an investors’ conference on Thursday, and give sales guidance for the second quarter, as well as the company’s dividend policy after it posted record earnings per share last year of NT$210.69. As the firm’s capacity utilization rate declined, first-quarter gross margin is estimated to fall 5.27 percentage points quarter-on-quarter to 65.85 percent and net profit is forecast to decline 31.2 percent to NT$5.57 billion, or earnings per share of

By Chen Cheng-hui

FamilyMart sees limited effect from virus outbreak

LOW CHINA Earnings per share look set for a record this year on the back of an aggressive expansion and contribution from fresh food and e-commerce sales

The COVID-19 pandemic has had a limited impact on Taiwan FamilyMart Co (全家便利商店), as the convenience store operator’s main business is in Taiwan and its earnings contribution from China is less than 3 percent, analysts said last week. As the worst has passed for the company in terms of coronavirus impact in Taiwan and China, earnings per share are likely to rise to another record high this year, thanks to its aggressive store opening strategy and increased contribution from high-margin fresh foods and e-commerce, analysts said. FamilyMart operates the nation’s No. 2 convenience store chain, with 3,606 stores nationwide as of Feb. 29, the company said on its Web site. In China, it operates more than 1,200 stores in nine cities. In the first two months of this year, combined revenue grew 8.9 percent year-on-year to NT$13.09 billion (US$431.9 million), which reached 65.7 percent of Taishin Securities Investment Advisory Co’s (台新投顧) first-quarter revenue estimate on the back of a higher number of stores, and increased e-commerce sales and fresh food sales. As the outbreak has been relatively under control in Taiwan, FamilyMart has seen a gradual recovery in customer traffic by the end of last month, as well as improved single-store sales (SSS), in the first quarter, Taishin Securities said in a note on Wednesday. Its number of closed stores in China also dropped to 100 last month, compared with 600 at the beginning of February due to citywide lockdowns and travel restrictions amid the COVID-19 outbreak there, Taishin said. The company’s overall operation in China is likely to return to normal in July, it added. FamilyMart’s revenue in the first quarter is expected to increase 8.4 percent year-on-year to NT$19.71 billion, with earnings per share of NT$0.93, Taishin said. FamilyMart, which aims to add another 220 to 230 stores in Taiwan this year, on March 25

By Chen Cheng-hui

Trump threatens tariffs to protect US oil industry

US President Donald Trump on Saturday ramped up threats to use tariffs to protect the US energy industry from a historic glut of oil as efforts to forge a global deal to cut output appeared to lose momentum. Trump said at a White House press briefing that he would use tariffs if needed to protect the domestic oil industry, even as he predicted that Saudi Arabia and Russia would come to an agreement to cut output and stem the rout in prices. However, such a deal looked a bit further from reach at the weekend after a diplomatic row between Saudi Arabia and Russia. A gathering of OPEC+ members and other producers scheduled for today was pushed back to give more time for negotiations. Saudi Arabia, which last month launched a price war with Russia after OPEC+ talks broke down, has made clear that it would not cut production unless other producers — including the US — also hold back supply. However, Trump on Saturday said that “I don’t care about OPEC,” a “cartel” he has opposed all his life. The prospect of a deal to reduce the massive glut of oil caused by the COVID-19 lockdown last week sent benchmark oil futures to a record gain. Oil prices have fallen about 50 percent this year as the pandemic has knocked out as much as one-third of global oil demand. In the latest maneuver in the price war, Saudi Arabia yesterday postponed its monthly price-setting event for exported oil. Saudi Aramco’s official selling prices for next month could be pushed to tomorrow or Thursday, a person familiar with the situation said. The OPEC meeting has been tentatively rescheduled for Thursday. The move allows the company to have a better idea of how negotiations are going before setting the prices that are its key weapon in its

Japan to boost Avigan drug stockpile

Japan is considering increasing the stockpile of Fujifilm Holding Corp’s Avigan anti-flu drug during this fiscal year so that it can be used to treat 2 million people, according to a planning document seen by Reuters. Local media yesterday reported that Japan was hoping to triple the production of the drug from current levels, which is enough to treat 700,000 people if used by COVID-19 patients. Avigan, also known as favipiravir, is manufactured by a subsidiary of Fujifilm, which has a healthcare arm although it is better known for its cameras. The drug was approved for use in Japan in 2014. Avigan is being tested in China as a treatment for COVID-19. In the emergency stimulus package expected to be rolled out tomorrow, the government also plans to prioritize the clinical trial process of the drug so that it can be formally approved to be used in treating coronavirus patients. According to the document, Japan also plans to boost subsidies to domestic companies that supply masks and disinfectants, and would secure enough capacity to supply 700 million masks a month. The Nikkei newspaper reported that in efforts to reduce its dependence on China as its manufacturing hub, it would subsidize companies that would move some of their production facilities back to Japan. Japanese Prime Minister Shinzo Abe on Friday said that a stimulus package to combat the pandemic would target small firms and households hardest hit by social distancing policies that are affecting consumption. The package would include cash payouts to small firms and households facing sharp falls in income, Abe said. The government would also urge private financial institutions to join government-affiliated lenders in offering zero-interest rate loans to cash-strapped small and medium-sized firms, he said. Separately, Gilead Sciences Inc said it is donating 1.5 million doses of its experimental anti-coronavirus drug remdesivir, which could treat 140,000 patients. The

Virus downturn ‘way worse’ than financial crisis: IMF

and GENEVA, Switzerland The COVID-19 pandemic has brought the global economy to a standstill and plunged the world into a recession that would be “way worse” than the global financial crisis more than a decade ago, the head of the IMF said on Friday, calling it “humanity’s darkest hour.” IMF managing director Kristalina Georgieva, speaking at a rare joint news conference with the leader of the WHO, called on advanced economies to step up their efforts to help emerging markets and developing countries survive the economic and health impact of the pandemic. “This is a crisis like no other,” Georgieva told about 400 reporters on a video conference call. “We have witnessed the world economy coming to a standstill. We are now in recession. It is way worse than the global financial crisis” of 2008 to 2009. World Bank president David Malpass echoed her outlook in a post on LinkedIn, writing: “Beyond the health impacts from the COVID-19 pandemic, we are expecting a major global recession.” Georgieva said the IMF was working with the World Bank and the WHO to advance their call for China and other official bilateral creditors to suspend debt collections from the poorest countries for at least a year until the pandemic subsides. She said China had engaged “constructively” on the issue, and the IMF would work on a specific proposal in coming weeks with the Paris Club of creditor nations, the G20 major economies and the World Bank for review at the annual spring meetings, which are to be held online in about two weeks. In his posting, Malpass said a debt standstill could begin on May 1, providing added liquidity for the poorest countries as they battle the disease. During the suspension period the World Bank and the IMF could evaluate the sustainability of those countries’ debt, and the possible

Pizza rendezvous, odd bedfellows: how T-Mobile won Sprint

T-Mobile USA Inc on Wednesday completed its US$26.5 billion acquisition of Sprint Corp, a years-long saga that included a stare-down with US anti-trust officials, a court battle with state attorneys general and a virus crisis that has brought the US to a near standstill. While the COVID-19 pandemic is far from over, Sprint chairman Marcelo Claure last week said in an interview that the new T-Mobile is arriving at a good time to offer lower-priced wireless options to consumers battered by economic damage. “This will be a tough crisis for the world and Americans to absorb,” Claure said. “But at the end, every single person in the US needs their mobile phone.” Combining the nation’s two most aggressive wireless competitors was a fraught proposition from the start. It drew opposition from consumer groups, unions, politicians and regulators. Wall Street only gave it 50-50 odds. Then the spread of the coronavirus closed stores and forced executives, lawyers and officials from 16 banks to try to finish the deal remotely, most working from home. The journey started more than six years ago and almost immediately hit a wall. The vibrant wireless industry had four competitors and Washington was dead-set against reducing it to three. A series of setbacks ensued, including a bitter dispute over ownership structure, a new executive team, a secret meeting at a pizza shop in Hoboken, New Jersey, and a return to the table with new resolve, several people familiar with the situation said. SON’S IDEA Softbank Group Corp in 2013 bought Sprint for US$22 billion. In February 2014, Masayoshi Son, chairman of both Sprint and Softbank, met with regulators in Washington to sell them on his idea that Sprint and T-Mobile together could provide a formidable third competitor to the dominant duo of Verizon Communications Inc and AT&T Inc. Son’s plan got a chilly

By Scott Moritz and David McLaughlin

Zoom rockets to fame — with some hiccups — amid pandemic

What does British Prime Minister Boris Johnson have in common with virtual happy hour celebrants and thousands of students worldwide? All use Zoom Video Communications Inc’s videoconferencing application to get together while staying apart during the COVID-19 pandemic. However, amid its newfound fame, the Silicon Valley-based company has come under stepped-up scrutiny over how it handles privacy and security — including allowing uninvited guests to barge in on sessions. Created by engineer Eric Yuan (袁征) in 2011 and listed on the NASDAQ Composite a year ago, Zoom has seen its market value skyrocket to about US$35 billion. Yuan has spoken of a passion for communication technologies that dates back to the 1990s, when, as a university student in China, he longed for a way to see his girlfriend without needing to travel hours by train. Zoom hit the market as a tool for people working apart to collaborate on business, competing with offerings from the likes of Microsoft Corp, Facebook Inc, Google and others. As people worldwide stay home due to contagion risk, Zoom has become a go-to service for remote education, exercise classes, poker games, church services and happy hour celebrations. Couples have gotten married in “zoomed” ceremonies. Birthdays have been celebrated. Funerals have been virtually attended. “It’s really easy to use, and free; that’s nice,” said US schoolteacher Justin Minkel, who teaches students remotely using Zoom. “Just click a link.” Home chaos such as dogs barking or outbursts from siblings can be disruptive, but Minkel cures that by “muting” students’ microphones until he needs to hear them. The daily number of people taking part in Zoom meetings last month eclipsed 200 million, up from just 10 million at the end of last year, Yuan said. Video calls have surged on all messaging platforms, including WhatsApp, Facebook Messenger and Google Hangouts, but Zoom has become a star. It lets as

By Julie Jammot

Wall St falls as virus shreds US payrolls

‘GRIM ECONOMIC REPORTS’: The US employment report showing the loss of 701,000 jobs last month is a sober reminder of what is to come, an investment strategist said

Wall Street’s main indices on Friday fell more than 1.5 percent as the COVID-19 pandemic abruptly ended a record US job growth streak of 113 months, intensifying fears of a deep economic slowdown. Even the loss of 701,000 jobs that US Department of Labor data showed for last month did not completely capture the economic damage from the virus. The survey considered data only until the middle of last month, before widespread US lockdowns put more people out of work. The worldwide spread of the virus has forced billions of people to stay indoors and pushed entire sectors to the brink of collapse, triggering mass layoffs and dramatic steps by companies to raise cash. “Even as investors may be bracing for some grim economic reports over the next several weeks, we got a very sober reminder of what is to come by way of today’s jobs report,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC in Philadelphia. Investors were also anxious heading into the weekend due to the possibility for “particularly ugly” weekend news on coronavirus case counts or new hotspots around the US, Luschini said. The S&P 500 closed down almost 27 percent from its mid-February record-high close, or about US$7 trillion in market value, and economists have cut their forecasts for US GDP, with Morgan Stanley now predicting a 38 percent contraction in the second quarter. “This is not like December 2018. We’re not likely to see a V-shaped recovery, because we haven’t even begun to really tackle the main issue behind why this is happening. That’s still an ongoing process. It’s going to take time,” TD Ameritrade institutional senior trading strategist Mike Turvey said. The Dow Jones Industrial Average on Friday fell 360.91 points, or 1.69 percent, to 21,052.53, the S&P 500 lost 38.25 points, or 1.51 percent, to

Asian stocks fall on US jobs data

Asian stock markets on Friday tumbled after soaring US job losses tempered enthusiasm about a possible deal to stabilize oil prices amid anxiety over the global economic decline due to the COVID-19 pandemic. Benchmarks in Shanghai, Tokyo and Hong Kong all retreated. Australia’s main index fell 2.3 percent. Some markets followed Wall Street higher in early trading after US President Donald Trump said on Twitter that he expected major oil producers Saudi Arabia and Russia to back away from their price-cutting war. However, by midday, all major Asian markets had retreated. Southeast Asian benchmarks were mixed. US unemployment numbers were a “hard dose of economic reality” for markets, Oanda Corp’s Jeffrey Halley said in a report. Government data showed 6.6 million initial US unemployment claims this week, double the previous week’s record-breaking figure. That raised the number of Americans who have lost jobs in the coronavirus-driven downturn to almost 10 million. Markets were closed in Taipei for the Tomb Sweeping Day long weekend. The TAIEX on the last day of trading on Wednesday fell 0.46 percent to close at the day’s low at 9,663.63, up 2.7 percent from Friday last week. Tokyo’s Nikkei 225 on Friday fell 0.6 percent to 17,712.51. The Hang Seng in Hong Kong lost 0.8 percent to 23,098.68. South Korea’s KOSPI retreated 0.6 percent to 1,713.55, while Sydney’s S&P/ASX 200 declined to 5,032.80. India’s SENSEX fell 2.4 percent. Shanghai shares eased to conclude the week lower, as risk-averse sentiment strengthened on continued spread of the coronavirus. The Shanghai Composite Index (SSEC) fell 0.6 percent to 2,763.99. The blue-chip CSI300 index was down 0.57 percent, with its financial sector sub-index falling 0.9 percent, the consumer staples sector up 0.52 percent, the real-estate index down 0.18 percent and the healthcare sub-index up 1.05 percent. The smaller Shenzhen Composite Index ended down 0.47 percent and the start-up board ChiNext Composite

European stocks decline as economic toll emerges

European shares ended down on Friday, closing the week lower as dismal business activity data heralded a deep economic and earnings recession due to the COVID-19 pandemic. The pan-European STOXX 600 closed 1 percent in the red, with insurers dragging the most after a EU regulator asked them to suspend dividends and share buybacks to shore up liquidity. The index fell about 0.6 percent for the week. Still, it appeared to have gained a measure of stability after sharp daily movements over the past month. Composite data earlier in the day showed that business activity in the eurozone contracted severely last month, with several analysts forecasting worse readings as most economies in the region shut down to curb the spread of the virus. “We are entering a climate with lower or no dividends, fewer financial options, but most importantly, fewer jobs and lower output,” AxiCorp Financial Services Pty global market strategist Stephen Innes said. “Many small and large-sized businesses will not survive this storm.” Economists expect eurozone real GDP to shrink as much as 43 percent in the second quarter. Bank stocks fell 2.2 percent and were the worst performing European sector for the week, shedding about 11 percent. The sector looked vastly less attractive after several banking majors suspended their dividend payouts earlier in the week. Energy stocks dragged on the STOXX 600, relinquishing most of their gains from Thursday after a record spike in oil prices on hopes that Saudi Arabia and Russia would end their price war. The bump in prices, along with extremely low stock valuations in the sector, saw energy stocks outperforming other sectors for the week with a 9 percent gain. Healthcare stocks were among the few gainers on Friday, as the sector continued to benefit from safe-haven demand. They added 5.8 percent for the week.

Oil posts record leap on hopes of production cuts

Oil on Friday posted a record weekly jump on hopes that global producers will decide to make historic output cuts next week, although optimism was tempered by concern that the curbs would not avert a glut. The OPEC+ coalition, including Saudi Arabia, is to hold a meeting of its members by video conference tomorrow, with the gathering open to even producers outside the group. While it is unclear who would attend, market watchers are predicting that stockpiles are likely to swell even if global supplies are cut by 10 million barrels a day. Investors would be closely watching the guest list of the meeting — especially names outside OPEC and its allies — after Saudi Arabia made clear that it would only cut production if others, including the US, shoulder some of the burden. US West Texas Intermediate futures ended the week up 32 percent at US$28.34 a barrel, while Brent crude jumped 37 percent to US$34.11 a barrel. Still, prices are less than half the levels at the start of the year, with the COVID-19 pandemic crushing demand. “I think Russia, Saudi Arabia and OPEC are coming to the conclusion that if they don’t agree to something, it will be forced on them by the market,” Tortoise Capital Advisors LLC portfolio manager Brian Kessens said. “Any cuts will extend the runway to June instead of May, which is helpful as countries try to work through the coronavirus lockdown. But it only softens the blow.” One delegate from the producer group said that a global cut of 10 million barrels a day is a realistic goal. Russian President Vladimir Putin told the country’s top oil executives that producing countries should join together to slash output to reverse the collapse in prices, adding that worldwide curbs of a little above or below 10 million barrels a

US dollar rises on safe-haven bids, ignoring jobs data

The US dollar on Friday firmed against major currencies for a third straight day as investors took shelter in the US currency amid worsening economic fallout from the COVID-19 pandemic. “As we see poor data coming in from Europe, UK, Italy, if you’re trying to be rushing anywhere, it would be US Treasuries and the US dollar as a safe haven,” said John Doyle, vice president of dealing and trading at Tempus Inc in Washington. The US dollar largely shrugged off the US non-farm payrolls report that showed massive job losses of 701,000 last month, compared with expectations of 100,000 lost jobs. Last month’s contraction abruptly ended a historic 113 straight months of employment growth in the US. The unemployment rate rose to 4.4 percent from 3.5 percent the previous month. The US Department of Labor also revised February’s number upward to 275,000 job gains. “The plunge in non-farm payrolls in March, which is already close to the worst monthly declines during the global financial crisis, suggests the coronavirus pandemic started to decimate the economy even sooner than we thought,” Capital Economics Ltd senior US economist Andrew Hunter said. The non-farm payrolls report followed Thursday’s data showing initial claims for US unemployment benefits rose to 6.65 million in the latest week from an unrevised 3.3 million the previous week. In Taipei, the New Taiwan dollar fell against the US dollar on Wednesday, losing NT$0.054 to close at NT$30.308, down 0.2 percent from Friday last week. Markets in Taiwan were closed on Thursday and Friday for the Tomb Sweeping Day long weekend. The US dollar index rose 0.5 percent to 100.68 on Friday. The index posted a 2.4 percent gain on the week, having whipsawed last month from highs on a scramble for cash before slumping as the US Federal Reserve flooded

Gold bugs see their predictions of doom coming true

‘SAYING IT FOR YEARS’: Gold investors who have long prophesized a financial apocalypse appear proven right as markets crash and social interactions become limited

For years, gold bugs were relegated to the fringes of financial markets. Often viewed by mainstream investors as tinfoil-hat conspiracists with basements full of beans and bottled water, their warnings sounded apocalyptic: a coming collapse in financial assets, widespread devaluation of paper money and global disasters that erode civil liberties. Welcome to 2020. As the COVID-19 pandemic brings economies around the world to a standstill, gold is rivaling US Treasuries and the US dollar as the best-performing major asset this year. The metal proved its haven status with a 6 percent rally as almost US$16 trillion was wiped off global stock markets and oil plunged. There has also been a scramble for physical metal as investors in exchange-traded funds build the biggest stockpile in history and dealers say they are struggling to find gold to sell. “We’ve been trying to warn people that something like this would happen,” said Jim Rickards, the author of several books that predicted a coming financial reset. Rickards, who spoke from a New England mountain compound, has long recommended holding gold as a precaution for wealth preservation. “I’ve been saying it for years,” he said. “I’m not happy about being right.” There are echoes of many of the typical gold bug predictions in today’s crisis: Besides the obvious economic and financial market upheaval, social interaction has become taboo and in some places soldiers are telling people not to leave their homes. Even the so-called paper market for gold is showing cracks and a squeeze last month on New York’s Comex, the largest gold futures exchange, added fuel to another of the prophecies: that when the crisis came, there would not be enough gold to go around. “We have written more than 3,000 pages of research about gold and mining stocks in the last 14 years and it is pleasing to see that many

March housing transactions rose 7.8%

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 improving infrastructures, such as the Asian Silicon Valley project, the Taoyuan Aerotropolis (桃園航空城) and the Taiwan Taoyuan International Airport Access MRT, Taiwan Realty research manager Chen Ping-chen (陳炳辰) said. That helped boost Taoyuan’s population by 200,000 in the past five years to 2.25 million, the broker said, adding that the trend fueled real demand and asset allocation needs. Taipei reported a 20.8 percent increase in housing deals from a year earlier to 2,483, also aided by transfers of newly completed projects in Nangang District (南港), Chen said. Zhongshan District (中山) was another hot spot, he said. Transactions in New Taipei City rose 5.1 percent to 4,849 and surged 18.7 percent to 3,826 in Taichung, data from the local governments showed. However, southern Taiwan put up a weak showing, with transactions dropping 4.9 percent in Tainan and plunging 18.9 percent to 3,088 in Kaohsiung, official tallies showed. Evertrust Rehouse Co (永慶房屋) spokesman Jay Hsieh (謝志傑) attributed the fall in Kaohsiung to a higher base last year, when a new residential complex was completed. The spread of COVID-19 in February was relatively mild in Taiwan and abroad, except for China and South Korea, but its impact might start to emerge going forward, analysts said. The virus has since

By Crystal Hsu

Himax posts better margins, profit

Himax Technologies Inc (奇景光電), a fabless supplier of driver ICs for displays and complementary metal-oxide-semiconductor (CMOS) image sensors, yesterday reported stronger-than-expected gross margins and net profit for last quarter. The NASDAQ-listed company reported earnings per American depositary share of US$0.019, beating its February forecast of a loss of US$0.005 to US$0.018, it said in a statement. That is the second straight quarter that Himax posted a profit. Gross margin climbed 2.1 percentage points — better than its forecast of 1 to 2 percentage points — to 22.7 percent last quarter, from 20.6 percent in the fourth quarter last year, the statement showed. “The company has decided to publish financial results for the January-to-March quarter immediately after it concluded due to the current volatility across global markets as COVID-19 continues to spread,” Himax chief executive Jordan Wu (吳炳昌) said in the statement. “Himax will continue to work closely with clients and suppliers to lower the pressure that the pandemic might exert on the company’s performance,” Wu said, adding that it has taken strict precautionary measures to ensure the health and safety of employees and business partners. The company is to publish its complete financial statements and business outlook next month. First-quarter revenue increased 5.5 percent sequentially to US$184.6 million, in line with its forecast of an increase of 1 to 10 percent. That was also a better-than-expected seasonal performance, as revenue usually declines by 10 percent during the off-season, it said. Himax in February said that first-quarter revenue from small-sized display driver ICs for mobile phones and vehicles would grow between 10 and 20 percent sequentially due to market share gains. That was despite some downward adjustments from customers, mainly from certain China-based clients making small-sized display drivers and CMOS image sensors as they were still scrambling to restore operations, the company said. Small-sized display driver ICs for smartphones

By Natasha Li