Eslite Spectrum Corp (誠品生活), which operates bookstores, restaurants, hotels and commercial centers in Taiwan, on Thursday said it aims to open four new bookstores over the coming quarters, as the company aims to extend its reach and attract more local readers.
The company, launched in 2005 and listed on the over-the-counter bourse in 2013, is 51 percent held by Eslite Corp (誠品), one of the largest retail bookstore chains in Taiwan. Shares closed 0.36 percent higher at NT$140.5 on Friday.
In the second quarter of next year, the company is to unveil its first bookstore in Hualien County, Eslite Spectrum vice president Lin Wan-ju (林婉如) told reporters after a media gathering in Taipei.
The company is to open another store in Taipei’s Shin Kong Mitsukoshi Department Store (新光三越百貨) in the third quarter and one in Kaohsiung in the fourth quarter, Lin said, adding that it also plans to open a new outlet in Taichung by the end of next year at the earliest.
The expansion plan is to catalyze the company’s growth momentum, but is not expected to start making significant revenue contribution until the final quarter of next year, Jih Sun Securities Investment Consulting Co (日盛投顧) said in a client note on Friday.
Brick-and-mortar stores have become less dominant as online bookstores gain popularity, but Lin gave a positive outlook for the local bookstore industry, citing an Eslite survey that showed that nearly 60 percent of local readers still visit physical bookstores every month.
“There is still room for the company [to open more bookstores in the nation],” she said.
The company is to deploy big data analytics to understand consumer behavior and provide better services, Lin said.
Eslite Spectrum operates 44 bookstores in Taiwan, Hong Kong and China’s Suzhou, with customer traffic of nearly 200 million people last year, according to a company statement.
It posted cumulative revenue of NT$3.86 billion (US$128.7 million) for the first 11 months of this year, edging up 0.01 percent from same period last year, Taiwan Stock Exchange data showed.
Bookstores and commercial centers contribute nearly 78 percent of the company’s total sales, while restaurants and hotels account for 18 percent and 4 percent respectively.
Eslite Hotel (誠品行旅), which opened in 2015, remains unprofitable and is not expected to break even until 2019.
Overall, Eslite Spectrum reported NT$340 million in net income in the first three quarters of this year, down 3.2 percent year-on-year, with earnings per share (EPS) of NT$7.06.
Jih Sun forecast the company’s revenue for the entire year would increase 1 percent year-on-year to NT$4.31 billion, with net income rising 2 percent to NT$452 million, or EPS of NT$9.54.
Revenue next year is expected to grow 5.6 percent to NT$4.55 billion and net income is to reach NT$461 million, or NT$9.73 per share, Jih Sun said.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
Foxconn Technology Group (富士康科技集團) and Luxshare Precision Industry Co (立訊精密) plan to add millions of gaming devices to Vietnam’s annual output, according to documents they submitted to local authorities, reinforcing the country’s role in the global supply of game consoles. Vietnam assembles a variety of electronic products destined for foreign markets, including smartphones, computers and tablets. Information on its production of consoles is not public, but Foxconn EV Energy & Component (Vietnam) Co, a subsidiary of the Taiwanese manufacturer, has capacity to produce up to 4 million gaming devices in a factory in Northern Vietnam, according to a company document from
RSS