Yang Ming Marine Transport Corp (陽明海運) plans to prioritize boosting its profitability over expanding its fleet size, chairman and CEO Cheng Chen-mount (鄭貞茂) said yesterday, adding that the firm would seek to attract foreign institutional investors with healthy financial portfolios.
Among local container shippers, Yang Ming ranks second by fleet size, with 90 vessels and an operating capacity of 621,951 twenty-foot-equivalent units (TEUs) — only Evergreen Marine Corp (長榮海運), with its 190 vessels and 1.25 million TEUs, ranks higher, the companies’ data showed.
Yang Ming has secured a 2.6 percent share of the world’s liner fleet, data compiled by Alphaliner, a France-based maritime consultant, showed.
Photo: Wang Yi-hung, Taipei Times
“We used to focus on enlarging our capacity and would order new vessels in a bid to retain our market share, but it also resulted in capital expenditures that were too high. In the future, we will order new vessels under the premise that the new vessels could help gain new profit momentum,” Cheng told an investors’ conference in Taipei.
Yang Ming aims to lower its debt-to-asset ratio, which stood at 90 percent as of the end of June, Cheng said.
Institutional investors and foreign investors hold a combined 5 percent stake in Yang Ming, a figure that Cheng said he hopes to push higher.
Yang Ming would also like to hold earnings conferences quarterly, he said.
With a net loss of NT$885 million (US$30.61 million) in the first six months of the year, the shipper stayed in the red, but the loss narrowed from NT$1.94 billion a year earlier, thanks to rising freight rates and falling oil prices, the firm said.
The shipper holds an upbeat outlook for this quarter given excess demand in the market, Yang Ming spokesperson Shih Mei-chi (史美琦) said.
Although the fourth quarter is usually the slow season for sea shipping, it is not the case this year, as a shortage of containers has led to limited supply and driven up international freight rates, Shih said.
The freight rates for routes from Asia to the US are expected to remain high until the Lunar New Year holiday next year, he said.
The shipper had feared that sea cargo demand might drop at the beginning of the COVID-19 pandemic, but it turned out that with more people working from home, orders for exercise equipment and home entertainment products have picked up — and all of those goods need to be transported by container ships, Shih said.
With the rise in freight rates and volumes, Yang Ming’s third-quarter revenue reached NT$38.85 billion, its second-highest revenue for a single quarter, it said.
SETTING AN EXAMPLE: The commission suspended the bank’s two top executives as ‘a warning to all banks,’ while the fine is the biggest to be given to a bank in a single case The Financial Supervisory Commission (FSC) yesterday fined E.Sun Commercial Bank (玉山銀行) NT$20 million (US$693,698) over a theft scandal and punished the bank’s two top executives. A customer relationship manager surnamed Pan (潘) at the bank’s branch in Kaohsiung’s Fengshan District (鳳山) stole NT$140 million from 41 clients over the past seven years, the commission said. Pan secretly transferred the stolen money to accounts belonging to her and her family members by using clients’ debit cards, passwords or documents that were stamped using the clients’ personal stamps between July 2013 and June this year, the commission said. The commission suspended Ben Chen (陳炳良), the
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain the third-largest IC supplier this year, unchanged from last year, IC Insights said yesterday. IC designer MediaTek Inc (聯發科) is expected to become the 11th-largest, up from 16th last year, the semiconductor market research firm said. TSMC is expected to post US$45.42 billion in sales, up 31 percent from last year, IC Insights said in a report released on its Web site. TSMC’s sales growth is largely due to a surge in orders from Apple Inc and HiSilicon Technologies Co (海思半導體) — two of its major clients — which
HARD ASK: At a meeting held by the MOEA to talk about the RCEP trade deal, trade associations said that they expect the government to push for more free-trade deals Business representatives yesterday urged the government to slow the appreciation of the New Taiwan dollar, saying that some Taiwanese industries have been undercut by rivals due to unfavorable foreign exchange rates. The government should also assist local industries to expand their domestic market, and push for more bilateral trade deals so that Taiwanese companies can enjoy zero or preferential tariffs on exports, following the nation’s exclusion from the Regional Comprehensive Economic Partnership (RCEP) which was signed by 15 Asia-Pacific nations on Nov. 15, they said at a meeting with the Ministry of Economic Affairs (MOEA). Some participants said that the NT dollar’s
BREATH OF LIFE: The firm said the under-utilized plant should start mass production in the first quarter, timed to coincide with Intel Corp’s release of its Ice Lake server chip Hon Hai Precision Industry Co (鴻海精密) plans to assemble key components for Google servers at its plant in Wisconsin, people familiar with the matter said, finally breathing life into a factory that US President Donald Trump hailed as crucial to bringing manufacturing back to the US. The company has decided to locate production for this new contract at the existing complex rather than make the components at home or in China, the people said, asking not to be identified. The under-utilized plant should start mass production in the first quarter, timed with the release of Intel Corp’s Ice Lake server chips,