Footwear supplier Feng Tay Enterprises Co (豐泰企業) yesterday reported that net profit for the first half of this year grew 13.33 percent to NT$2.18 billion (US$71.52 million), compared with NT$1.92 billion a year earlier, fueled by growing demand from its largest client, Nike Inc.
Earnings per share were NT$3.26 over the period, compared with NT$2.88 in the same period last year.
Cumulative revenue amounted to NT$30.47 billion, up 9.89 percent annually from NT$27.72 billion, company data showed.
The Yunlin County-based company said it sold 54.88 million pairs of shoes in the first half, a 10.9 percent increase from a year earlier.
KGI Securities Investment Advisory Co (凱基投顧) on Tuesday last week said in a report that Nike’s earnings growth should continue to lend support to Feng Tay’s business throughout this year.
Nike last month reported its fiscal fourth quarter (ending May 31) results, which showed revenue increasing 13 percent to US$9.8 billion and earnings per share rising 15 percent to US$0.69, driven by strong double-digit revenue growth in international markets.
To meet rising demand from the US client, Feng Tay is expanding its production capacity by boosting the total number of production lines at its plant in Bargur, India, from four to 10 by the end of this year, the KGI report said.
Yuanta Securities Investment Consulting Co (元大投顧) analyst Peggy Shih (施姵帆) agreed, saying in a client note that Feng Tay is expected to benefit the most among Taiwanese shoe suppliers from Nike’s accelerating sales growth, as the US brand remains its largest client.
Feng Tay shares slid 0.66 percent to close at NT$149.50 before the earnings announcement.
The company has set a sales target of 29 million pairs of shoes for this quarter, up 14 percent from a year earlier, its Web site showed.
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