Green Energy Technology Inc (綠能科技) saw its shares skyrocket more than 7 percent in yesterday’s early session after the nation’s largest solar wafer maker swung back to its first quarterly profit in five quarters.
At the end of session, Green Energy shares ended 3.25 percent higher at NT$15.9, its highest in about one-and-half months and outperforming the TAIEX, which pulled back 0.51 percent.
The Taoyuan-based company eked out a net profit of NT$101 million (US$3.45 million) in the final quarter of last year, reversing a loss of NT$33 million in the third quarter of last year and a loss of NT$591 million in the fourth quarter of 2016.
Gross margin climbed from 5 percent to 8 percent a quarter ago and minus-12 percent in the prior year, the company said.
“Green Energy returned to the black in the fourth quarter of last year due to optimizing product portfolios. High-efficiency solar wafers have helped support average selling prices,” the company said in a statement on Monday.
The company attributed the turnaround to rising demand for cost-efficient diamond-wired wafers and high-end bricks. Silicon wafers, which are used to manufacture solar cells, are made by sawing thin slices from monocrystalline rods or multicrystalline bricks.
Last year, the company narrowed its loss to NT$644 million, compared with a loss of NT$100 million in 2016.
However, revenue dipped 22.86 percent annually from NT$15.31 billion to NT$11.81 billion.
Green Energy gave a cautious outlook for this year due to increasing trade barriers, primarily from the US, and the stiff competition.
The company earlier this month posted its lowest monthly revenue in 15 months for last month — NT$809 million — due to declining prices and fewer working days during the Lunar New Year holiday.
Revenue shrank 16.4 percent month-on-month last month, or drop of 6 percent year-on-year.
Despite dwindling demand, its factory utilization rates stood at 85 percent last month, the firm said.
In related news, silicon wafer Wafer Works Corp (合晶) on Monday said that it made a net profit of NT$300.29 million last year, or earnings per share of NT$0.67.
The company lost NT$1.49 billion in 2016.
Its board has approved a cash dividend distribution of NT$0.4 per common share, representing about 60 percent payout ratio. The proposal is subject to a shareholders’ vote at the annual meeting scheduled for June 27.
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