Home appliance supplier Tatung Co (大同) on Friday gave a bright outlook for its business this year, especially the “green” energy segment, after the company swung back into profit last year.
“With regard to the prospect of 2018, the company has very good opportunities in ‘smart’ meters, ‘smart’ grid and energy management systems, solar power plants, power equipment for power plants and substations as the growth engine,” Tatung said in a statement.
As growth in these areas requires considerable financial resources, Tatung said it would raise capital or seek financial support from investors to ensure stable funding.
The 100-year-old company operates a number of subsidiaries in fields ranging from green energy, flat panels and semiconductors to healthcare, asset development and retail distribution.
The company reported a net operating profit of NT$1.09 billion (US$37.4 million) for last year, a significant improvement from a net operating loss of NT$2.87 billion in 2016, although consolidated revenue decreased 2.74 percent year-on-year to NT$75.55 billion.
The net profit attributable to the parent company was NT$74 million, compared with a net loss of NT$2.34 billion in 2016. Overall, earnings per share reached NT$0.03, compared with a net loss per share of NT$1.03 a year earlier.
“The appreciation of the NT dollar in 2017 resulted in a slight decline in consolidated revenue. However, all the [affiliated] companies adjusted business structures, increased high-margin products and reduced expenses, resulting in a turnaround in net profit,” Tatung said.
Tatung said the performance of some of its subsidiaries improved last year, with flat-panel subsidiary Chunghwa Picture Tubes Ltd (中華映管) turning around after nine consecutive years of losses.
Solar power subsidiary Green Energy Technology Inc (綠能科技) was still in the red for last year, but the losses were lower than the previous year’s after posting profits in the final quarter of last year, Tatung said.
Another major subsidiary, San Chih Asset International Holding Corp (尚志資產開發), would also continue to realize the value of its assets, the company added.
However, Chunghwa Picture Tubes and Green Energy Technology still face an oversupply problem in their respective industries, which would require them to increase their efforts to improve their performance, Tatung said.
Tatung shares rose 7.04 percent to NT$22.05 on Friday in Taipei trading.
They have increased 17.71 percent since the beginning of this year, outperforming the broader market’s 1.7 percent rise.
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