CHIPMAKERS
Distributor’s Q4 profits drop
WT Microelectronics Co (文曄科技) yesterday posted NT$591 million (US$19.16 million) in net profits for the fourth quarter last year, a 40 percent drop from the NT$988 million it posted in the previous quarter. Earnings per share dipped to NT$1.6 from NT$1.79. Net profits for all of last year were up 1.33 percent to NT$2.78 billion, or NT$5.02 per share, from NT$2.52 billion, or NT$5.26 per share, in 2017. The chip distributor told an investor conference that revenue would fall by from 18 percent to 24 percent this quarter to between NT$65 billion and NT$70 billion due to dwindling demand for its communications segment, mainly smartphones. More than half of its NT$85.76 billion revenue came from the segment. Gross margin would drop to between 3.3 and 3.5 percent this quarter, from 3.89 percent last quarter, it said.
ELECTRONICS
Avary profits soar 52%
Zhen Ding Technology Holding Ltd (臻鼎), which makes printed circuit boards for Apple Inc’s iPhones, yesterday said its Chinese subsidiary, Avary Holding (Shenzhen) Co Ltd (鵬鼎控股深圳), made 2.77 billion yuan (US$409.3 million) in net profits last year, a 51.72 percent jump from 1.83 billion yuan in 2017. That translated into earnings per share of 1.3 yuan last year, up from 0.93 yuan the previous year. Revenue only rose 8.08 percent to 25.85 billion yuan, from 23.92 billion yuan in 2017. Zhen Ding holds an 80.91 percent stake in Avary.
ELECTRONICS
Kinsus net profis falls 16%
Chip substrate supplier Kinsus Interconnect Technology Corp (景碩) on Monday reported NT$349 million in net profits for last year, a 16 percent drop from 2017’s NT$$416 million. Earnings per share dropped to NT$0.78 from NT$1.1. Revenue last year rose 6.23 percent to NT$23.73 billion, from NT$22.34 billion in 2017. The board of directors approved the distribution of NT$1.5 per common share, more than NT$1.2 per share proposed by the management. Kinsus said it would pay NT$676.26 million in cash divident to shareholders, up from its original plan of NT$541 million. The dividend is subject to shareholders’ approval at the annual meeting scheduled for May 29.
INVESTMENT
Cathay Life looks at water
Cathay Financial Holding Co (國泰金控), the nation’s biggest financial service provider by assets, yesterday said Cathay Life Insurance Co (國泰人壽) planned to invest as much as NT$470 million in cash to a newly created water treatment company. The investment would give the insurance subsidiary a 30 percent share of the company, it said in a filing with the Taiwan Stock Exchange.
STOCKS
Investors stay on sidelines
The TAIEX closed little changed yesterday after moving in a narrow range, as many investors remained cautious about upcoming US-China trade talks, dealers said. Large-cap stocks in the bellwether electronics sector appeared mixed, while buying in select old economy stocks, in particular in the cement and textile sectors, helped stabilize the market throughout the session, they said. The TAIEX ended up 6.98 points, or 0.07 percent, at 10,152.26. Turnover totaled NT$101.39 billion. “Following its strong showing in recent sessions, the main board has turned technically healthier, in particular after the TAIEX jumped past 10,148 points today,” Concord Securities (康和證券) analyst Kerry Huang said.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies advanced chips to Nvidia Corp and Apple Inc, yesterday reported NT$1.046 trillion (US$33.1 billion) in revenue for last quarter, driven by constantly strong demand for artificial intelligence (AI) chips, falling in the upper end of its forecast. Based on TSMC’s financial guidance, revenue would expand about 22 percent sequentially to the range from US$32.2 billion to US$33.4 billion during the final quarter of 2024, it told investors in October last year. Last year in total, revenue jumped 31.61 percent to NT$3.81 trillion, compared with NT$2.89 trillion generated in the year before, according to
PRECEDENTED TIMES: In news that surely does not shock, AI and tech exports drove a banner for exports last year as Taiwan’s economic growth experienced a flood tide Taiwan’s exports delivered a blockbuster finish to last year with last month’s shipments rising at the second-highest pace on record as demand for artificial intelligence (AI) hardware and advanced computing remained strong, the Ministry of Finance said yesterday. Exports surged 43.4 percent from a year earlier to US$62.48 billion last month, extending growth to 26 consecutive months. Imports climbed 14.9 percent to US$43.04 billion, the second-highest monthly level historically, resulting in a trade surplus of US$19.43 billion — more than double that of the year before. Department of Statistics Director-General Beatrice Tsai (蔡美娜) described the performance as “surprisingly outstanding,” forecasting export growth
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