Tongtai Machine and Tool Co (東台精機) is likely to report a revenue increase of 17.1 percent from a year ago on the back of rising orders, SinoPac Securities Co (永豐金證券) said last week.
SinoPac predicted that Tongtai’s revenue would hit NT$8.91 billion (US$296.78 million) this year, up from NT$7.6 billion last year ago, it said in a report on Friday.
Sales for the world’s second-largest maker of processing systems for printed circuit boards are expected to rise by 10 percent this year as Taiwanese customers turn away from Japan’s Hitachi Via Mechanics Ltd, SinoPac Securities analyst Iris Lin said.
Hitachi Via Mechanics was acquired by Hong Kong-based investment firm Longreach Group (隆力集團) on Oct. 31 last year.
Sales of processing systems for printed circuit boards accounted for 21 percent of Tongtai’s revenue last year, SinoPac Securities said.
Computer numerical control lathes, which accounted for 21 percent of total revenue last year, and vertical tapping and machining centers, which provided 47 percent of revenue last year, would see sales rise by 10 to 15 percent this year, the report said
“The Chinese car industry and printed circuit board industry are two main sales growth drivers, increasing the company’s current orders over a year ago,” Lin said in the report, adding that Tongtai has orders of NT$2.4 billion at hand, up from NT$1.1 billion last year.
SinoPac said profit would increase 83.8 percent to NT$523 million, or NT$2.26 per share, this year.
Last quarter, the company posted NT$140.74 million in profit, or NT$0.61 per share, more than quadrupling its NT$26.8 million, or NT$0.12 per share, a year ago, the company’s filing with the Taiwan Stock Exchange showed.
Taiwan’s machine tool exports rose 1.53 percent to US$325 million last month from a year ago, on rising exports to China, data compiled by the Taiwan Machine Tool and Accessory Builders’ Association showed.
Machine tool exports to China surged 18.9 percent last month from a year ago, it said.
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.
Hong Kong authorities ramped up sales of the local dollar as the greenback’s slide threatened the foreign-exchange peg. The Hong Kong Monetary Authority (HKMA) sold a record HK$60.5 billion (US$7.8 billion) of the city’s currency, according to an alert sent on its Bloomberg page yesterday in Asia, after it tested the upper end of its trading band. That added to the HK$56.1 billion of sales versus the greenback since Friday. The rapid intervention signals efforts from the city’s authorities to limit the local currency’s moves within its HK$7.75 to HK$7.85 per US dollar trading band. Heavy sales of the local dollar by
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
RSS