AUTO PARTS
Hiroca income falls 29.58%
Automotive components maker Hiroca Holdings Ltd (廣華控股) yesterday reported net income of NT$546.11 million (US$17.71 million) for last year, down 29.58 percent from a year earlier due to higher operating expenses, impairment charges and foreign-exchange losses. Earnings per share were NT$6.51. Cumulative sales increased 1.19 percent year-on-year to NT$8.06 billion. Hiroca, which produces automotive interior trim parts, as well as plastic, fabric and leather decorations, said its board has proposed distributing a cash dividend of NT$3.5 per share, which represents a payout ratio of 53.8 percent. With the company’s shares yesterday closing at NT$77.3 in Taipei trading, the proposed dividend suggests a yield of 4.53 percent.
SHIPPING
Yang Ming still in the red
Yang Ming Marine Transport Corp (陽明海運) yesterday said its volumes for last year increased 11 percent year-on-year to 5.23 million twenty-foot-equivalent units and consolidated revenue rose 8.21 percent to NT$141.83 billion, but the company was still in the red, with a net loss of NT$6.59 billion, or losses per share of NT$2.53. The company attributed the losses to higher global bunker fuel prices, which increased by 31.17 percent compared with the previous year.
LIGHTING
China Electric buys building
China Electric Manufacturing Corp (中國電器), which sells lighting products under the TOA (東亞) brand, yesterday said its property development subsidiary has reached an agreement with Hong Kong-based Best Combo Ltd (盛至) to purchase an office building in Taipei’s Neihu District (內湖) for NT$1.45 billion. The building is being used by Next TV (壹電視). Meanwhile, the company said it is planning a capital reduction scheme to adjust its capital structure and increase shareholder returns. China Electric plans to reduce its paid-in capital by 10 percent to NT$398 million, while returning NT$1 per share to shareholders, as well as a proposed cash dividend of NT$0.15 per share, it said.
BANKING
Subsidiaries to be merged
King’s Town Bank Co Ltd (京城銀行) yesterday said its board of directors has approved a plan to merge two wholly owned subsidiaries to expand customer services, strengthen customer protection and integrate resources to achieve synergies. King’s Town said in a regulatory filing that the integration of Tainan Life Insurance Agent Co Ltd (台南人身保險代理人) and Fu Chen Property Insurance Agent Co Ltd (府城財產保險代理人) is expected to reduce operational costs and have a positive impact on net value and earnings per share. The effective date of the merger has been set for June 3, King’s Town said.
ECONOMY
GDP to grow at least 2%
GDP growth for this year is to remain above 2 percent due to firming domestic demand and investment, Taiwan Institute of Economic Research (台灣經濟研究院) president Chang Chien-yi (張建一) said. While Chang acknowledged that this year’s growth momentum would be weaker than last year, when growth was 2.63 percent, there are also positive developments that should keep growth from slumping below 2 percent. Chang said most domestic enterprises have prepared for the challenges, while the government’s policy of attracting overseas Taiwanese businesses to return to Taiwan is expected to spur domestic demand, he said.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in