Wintek Corp’s (勝華) restructuring plan has caused a ripple effect on flexible printed circuit board (FPCB) makers Sunflex Technology Co Ltd (旭軟) and Career Technology Manufacturing Co Ltd (嘉聯益), as unpaid receivables are expected to erode their earnings for last quarter.
The news yesterday sent the stock prices of Career Technology and Sunflex falling by 6.9 percent and 6.93 percent to close at NT$36.45 and NT$31.55 respectively.
Sunflex said in a statement that Wintek owed the company NT$307.93 million (US$10.12 million) in receivables, representing 16.5 percent of the FPCB supplier’s total assets in the first six months of this year.
“The company will actively seek every way possible to reduce the impact and will intensively monitor the subsequent development of the company’s [Wintek’s] restructuring efforts,” Sunflex said.
If Wintek fails to improve its financial structure via the restructuring plan, Sunflex might lose NT$114 million after deducting compensation from an insurance policy on its receivables, Sunflex said.
That could erode NT$1.7 per share from Sunflex’s net profit last quarter, if the company books the loss in the upcoming release of its quarterly earnings, the state-run Central News Agency (CNA) reported yesterday, citing an anonymous analyst’s forecast.
Wintek is one of Sunflex’s top clients, contributing 38 percent of the FPCB maker’s total revenue of NT$1.03 billion in the first three quarters of this year, according to the statement.
Wintek on Monday filed a restructuring plan to a local district court in Greater Taichung to avert potential liquidation of the company by creditors.
Career Technology also said it would seek legal action to recover receivables of NT$318 million, which represents 2.54 percent of the company’s total assets in the first half of this year.
That could cut its net profit by NT$0.95 per share for last quarter, CNA reported.
Meanwhile, Orise Technology Co (旭耀科技), which supplies driver ICs to Wintek, yesterday said it might take legal action to recover NT$225 million in receivables.
The figure represents about 3.17 percent of Orise’s overall assets in the first six months of this year, the company said in a stock exchange filing.
Orise shares inched up 0.48 percent to NT$42.2, going against the broad downtrend of the local bourse.
Touchpanel maker Young Fast Optoelectronics Co (洋華光電) yesterday said Wintek owed it NT$105.19 million in receivables, accounting for 1.09 percent of its total assets in the first half of this year.
LCD panel maker HannStar Display Corp (瀚宇彩晶) also said it has unpaid receivables of NT$218.65 million from Wintek.
The figure is 0.46 percent of its total assets.
Young Fast shares plunged 6.93 percent to NT$18.8, while HannStar shares tumbled 7 percent to NT$7.31 yesterday.
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