The recent change of top management in High Tech Computer Corp (宏達電), the nation's leading smartphone contract maker, is expected to have little impact on the firm as its performance depends on its product mix, analysts said.
"The shift in top-level executives will for sure have a negative impact on any company, but in High Tech's case, I believe the influence will be minimal," Dave Chou (
High Tech Computer's chief executive officer (CEO) Cho Ho-tu (
Company president Peter Chou (
High Tech Computer, which supplies smartphones for global brands such as T-Mobile International and Orange SA, was founded by Cher Wang (
Since becoming CEO in April last year, Cho has gradually shifted responsibilities over to Chou.
Chou has built up a solid foundation for High Tech over the past year, Cho said.
However, Yuanta's Chou said the company should strive to maintain product quality, a strong research and development capability and good product mix to maintain its leading position in the industry.
He said that as the revenue contribution from its PDA lineup began to weaken in the second quarter, High Tech is now focusing on third-generation handsets, which will be shipped this quarter.
Third-generation technology is designed to provide e-mail, high-speed Internet and live sound and image broadcasts to compatible handsets.
Chou said this is a good bet as the telecommunications industry is now embracing 3G technology and High Tech Computer is on the correct track if it grabs the right timing to introduce related products.
High Tech Computer announced Tuesday that revenues totaled NT$28.69 billion (US$876 million) for the first half of the year. Its after-tax net income reached NT$4.06 billion, up 141 percent year-on-year. After-tax earnings per share (EPS) were NT$11.54.
Chou expects the company's before-tax EPS to grow 20 percent from the first six months to reach NT$13.8 for the second half, and pass the NT$25 mark for the whole year.
Another analyst was also upbeat about High Tech Computer's prospects for the remainder of this year.
"The third quarter outlook is set to be rosy for High Tech Computer, as the shipments of new phones begin in September and more customer orders pour in," said Helen Chen (陳佩君), an analyst with Polaris Securities Co (寶來證券), in a report released yesterday.
She expects the company will achieve NT$16.26 billion in revenues in the third quarter, 5.29 percent growth from the previous three months. The securities house estimates High Tech will achieve EPS of NT$23.09 for the full year.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading
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