FPG announces bonuses
Formosa Plastics Group (FPG, 台塑集團) is to distribute bonuses equivalent to 4.94 months’ salary to employees of its four major units ahead of the Lunar New Year holiday, which starts on Jan. 24. This year’s amount is less than the 5.83 months’ salary that the group distributed last year, as earnings at the four FPG subsidiaries were generally lower than a year earlier due to the negative effect of the US-China trade dispute, the group said. The four subsidiaries reported average pre-tax earnings per share of NT$4.84 for last year, a preliminary estimate released by the group showed.
CPDC to raise US$129m
China Petrochemical Development Corp (CPDC, 中石化) has priced its global depositary receipts (GDRs) at US$7.18 per unit. They are scheduled to be listed on the Luxembourg Stock Exchange on Monday. In a regulatory filing yesterday, the company said that it is issuing 180 million GDRs, representing 450 million common shares, as it aims to raise US$129.24 million to fund its investment in a subsidiary and build a chemical plant overseas. While the GDRs are expected to dilute earnings per share by 13.7 percent at most, “with respect to our financial structure, the increase in our own capital and lower debt ratio will be more beneficial to the group’s future operating performance and development,” CPDC said.
Getac sales rise 20.05%
Rugged PC vendor Getac Technology Corp (神基) yesterday reported that sales for last month increased 20.05 percent year-on-year to NT$2.44 billion (US$81.1 million). That helped increase its fourth-quarter sales to NT$7.34 billion, up 1.8 percent from the third quarter and 13.3 percent from a year earlier. Getac attributed the quarterly increase to contributions from government projects and expanded capacity at its Vietnamese manufacturing site. For the whole of last year, consolidated revenue reached NT$27.26 billion, up 10.41 percent from NT$24.69 billion in 2018.
Qisda revenue grows 8.8%
Qisda Corp (佳世達) on Monday reported that revenue for last month increased 8.8 percent year-on-year to NT$14.49 billion, bringing fourth-quarter revenue to a record high of NT$45.97 billion. Total revenue for last year also hit a new high at NT$169.86 billion, up 9.04 percent from 2018. The company attributed the increase to the strength of its business segments, as well as contributions from subsidiaries such as Aewin Technologies Co Ltd (其陽科技), Sysage Technology Co Ltd (聚碩), Topview Optronics Co (勝品電通) and Ace Pillar Co (羅昇). Qisda owns 51.26 percent and 20.49 percent stakes in Aewin and Ace Pillar respectively. The company last year acquired 35 percent and 20 percent shares in Sysage and Topview respectively.
TAIEX continues slide
The TAIEX fell further yesterday, amid geopolitical tensions after the US killed Iran’s top military commander last week, but the main board recovered from an early low due to bargain hunting near the end of the session, dealers said. The bellwether electronics sector led the downturn on the broader market, while select old economy and financial stocks remained resilient, lending some support to the market, dealers said. The TAIEX ended down 73.04 points, or 0.61 percent, at 11,880.32. Turnover totaled NT$164.811 billion during the session.
RECORD BUDGET: TSMC does plan to raise its proposed capital expenditure a lot, and could benefit if Intel outsources more of its production to foundries, analysts said Intel Corp’s earnings conference call on Thursday is expected to clarify the US semiconductor giant’s outsourcing production plans, which would be crucial regarding Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) performance, analysts said. “TSMC stands to benefit if Intel outsources more of its fabrication to foundries,” SinoPac Securities Investment Service Corp (永豐投顧) analysts said in a note on Friday. Yuanta Securities Investment Consulting Co (元大投顧) was more cautious, saying that Intel’s contribution initially would be limited, but its outsourcing plans would still highlight TSMC’s leadership in technology, it added. “Intel will continue to manufacture server or high-end central processing units [CPUs], which have higher
MOBILE SMART: The Dimensity 1200 is 22 percent better in terms of performance than its predecessor, and 25 percent more power-efficient, the handset chip designer said MediaTek Inc (聯發科) yesterday unveiled its premium 5G processors — the Dimensity 1200 and Dimensity 1100 — as it vies for a larger slice of the world’s rapidly growing 5G smartphone market. Manufactured using Taiwan Semiconductor Manufacturing Co’s (台積電) 6-nanometer process technology, the Dimensity 1200 processor performs 22 percent better than the previous generation Dimensity 1000+ processor, and is 25 percent more power-efficient, MediaTek said. Chinese smartphone brands Xiaomi Corp (小米) and Realme Mobile Telecommunications (Shenzhen) Co (銳爾覓移動通信) are to be the first adopters of the latest Dimensity chips, the companies said during a virtual media briefing. Xiaomi plans to equip its first
Norway’s oil and gas reserves have made it one of the world’s wealthiest countries, but its dreams for deep-sea discovery now center on something different. This time, Oslo is looking for a leading role in mining copper, zinc and other metals found on the seabed and in hot demand in green technologies. The country could license companies for deep-sea mining as early as 2023, the Norwegian Ministry of Petroleum and Energy said, potentially placing it among the first countries to harvest seabed metals for electric vehicle batteries, wind turbines and solar farms. However, that could also place it on the front line of
‘BROAD RANGE’: The US Department of Commerce intends to deny a significant number of license requests for exports to Huawei, an industry association said US President Donald Trump’s administration notified Huawei Technologies Co (華為) suppliers, including chipmaker Intel Corp, that it is revoking certain licenses to sell to the Chinese company and intends to reject dozens of other applications to supply the telecommunications firm, people familiar with the matter told reporters. The action — likely the last against Huawei under Trump — is the latest in a long-running effort to weaken the world’s largest telecommunications equipment maker, which Washington sees as a national security threat. The notices came amid a flurry of US efforts against China in the final days of Trump’s administration. US president-elect Joe