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.
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.
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.
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.
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.
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their
‘NEW TRAVEL MARKET’: The carrier initially planned to lay off about 8,000 people globally, but after government intervention reduced that to 18 percent of its workforce Cathay Pacific Airways Ltd (國泰航空) would cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the unprecedented damage caused by the COVID-19 pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close today, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including about 5,000 jobs in Hong Kong, it said. The company, which posted a HK$9.9 billion (US$1.3 billion) loss in the first half, has for months
V-SHAPED RECOVERY: Local tech firms have benefited from strong demand for 5G deployment and electronic devices required for a low-contact economy, CIER said The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its forecast for the nation’s GDP growth this year to 1.76 percent, from its previous estimate of 1.33 percent, saying exports and private consumption have staged a V-shaped recovery from the COVID-19 pandemic in the second half of the year. “The upgrade aims to reflect the fast recovery in Taiwan’s exports and domestic demand,” CIER president Chang Chuang-chang (張傳章) told a media briefing. The Taipei-based think tank said the economy might have expanded 2.77 percent last quarter — emerging from a 0.78 percent decline in the second quarter — and would grow
Hon Hai Precision Industry Co (鴻海精密) founder Terry Gou (郭台銘) yesterday said that the company remains committed to its project in Wisconsin, but appeared to condition its completion on the receipt of state incentives, the Wall Street Journal reported. Gou said in a statement that Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, remains committed to its investment, although “market conditions and the COVID-19 pandemic” have altered the timing of its expansion and the specifics of its manufacturing plans. The company has over the past three years invested US$750 million to transform southeastern Wisconsin into a high-tech