Chailease Holding Co Ltd (中租控股) is on course to reach a 10 percent growth target for its loan portfolio this year after achieving the lower end of its annual loan growth guidance of between 5 and 10 percent in the first half of the year, it said.
Despite annual improvement in asset quality being in sight for the January-to-June period, Chailease expects better asset quality in the second half of the year, as the COVID-19 pandemic affected the first half, the nation’s top leasing and finance services provider said in an online conference call on Wednesday last week.
Chailease’s business focuses on asset-based financing to small and medium-sized enterprises (SMEs) and retail customers in Taiwan, China and the ASEAN.
The company said it has only experienced minor effects from the pandemic, as the disease has been effectively contained in Taiwan and China.
While ASEAN nations were affected by the pandemic at a later stage, the company’s businesses in Vietnam and Malaysia are gradually recovering after strict measures were applied, it added.
Chailease’s net profit in the first half of the year grew 4 percent to NT$7.89 billion (US$267.1 million), from NT$7.62 billion in the same period last year, with earnings per share of NT$5.71.
The company attributed the results to good earnings growth momentum from Taiwan, where earnings rose 21 percent year-on-year to NT$4.44 billion, thanks to better pandemic control and good demand for auto and SME loans.
Taiwan generated 51 percent of Chailease’s total profit in the first half, compared with China’s 45 percent and ASEAN’s 5 percent, with its solar power business making up the rest, company data showed.
Consolidated revenue in the six-month period was NT$28.24 billion, up 2.8 percent from NT$27.47 billion a year earlier, while its consolidated delinquency ratio was 2.95 percent, compared with 2.78 percent a year earlier, and its ratio of loan-loss allowance to total loans fell from 2.72 percent to 2.52 percent over the same period.
The company said its asset quality in China has seen sequential improvement, with its customers’ loan repayment ratio substantially improving from 94.8 percent in January to 99 percent in June.
China’s delinquency ratio was 2.39 percent as of June 30, compared with 2.42 percent as of March 31, but up from 1.96 percent a year earlier.
To meet the government’s green energy development policy, Chailease has invested more than NT$30 billion in solar power plants, it said, adding that it plans to continue expanding its solar investments in the next five years, ranging from rooftop solar systems to ground-mounted solar farms.
SinoPac Securities Investment Service Corp (永豐投顧) maintains a positive view on Chailease, saying that the company’s business momentum in the second half should be better than in the first.
“Positive earnings drivers include peak seasonality in the second half of this year, reduced provision pressure as the easing pandemic conditions have helped stabilize the delinquency ratio in China, and the company’s rising gross loans and receivables amounts, which set the stage for stronger earnings momentum once the pandemic wanes,” SinoPac said in a note on Friday.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
RSS