BizLink Holding Inc (貿聯) has proposed a cash dividend of NT$8.25 per share, after the wire harness maker reported earnings per share of NT$14.01 for last year, it said last week.
The board of directors’ proposed dividend was lower than last year’s distribution, when the company paid NT$9 per share on earnings per share of NT$15.54 in 2019.
The proposal represents a payout ratio of 58.89 percent. Based on the company’s closing share price of NT$268 on Friday, it also suggests a dividend yield of 3.08 percent.
Photo: STR/AFP/China OUT
BizLink — the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s Model 3 sedans — reported that net profit last year decreased 0.85 percent year-on-year to NT$1.83 billion (US$64 million) on revenue of NT$22.54 billion, down 2.4 percent from 2019.
Gross margin was 25.33 percent, due to better cost controls and an improved product mix, while operating margin was 10.87 percent, BizLink said.
The firm’s profit margins have been under pressure in the near term due to unfavorable foreign-exchange rates and rising raw material prices, Yuanta Securities Investment Consulting Co (元大投顧) said in a note on Friday.
“However, for the mid to long term, we believe BizLink’s ongoing product mix improvement will drive its operating profit growth of 25 percent year-on-year in 2021 and 21 percent growth for 2022,” Yuanta said.
BizLink’s products also include cables for electric-vehicle battery management systems, as well as components for information technology, consumer electronics, electrical appliances and telecom equipment.
The effects of the COVID-19 pandemic persisted in the fourth quarter last year, driving demand for cloud-based services and boosting its shipments in the information technology, consumer electronics, electrical appliances and vehicle segments.
Year-end holiday demand also caused port congestion, container shortages and other logistics hurdles, which delayed some equipment for electrical appliances, and the automotive and semiconductor industries from December last year into January, it said.
Overall, materials costs and component shortages were key headwinds in the fourth quarter, it said.
BizLink remains positive about this year’s outlook as companies seek to diversify their production and vaccine rollouts are under way, it said.
However, global supply chains would remain strained as the effects of the pandemic persist, with higher costs as a result of elevated demand, rolling partial lockdowns, various materials and component shortages, as well as extreme weather in some areas, it said.
“Our long-term outlook remains favorable, and we anticipate sustained growth within data centers, energy, electric vehicles and semiconductor capital equipment,” BizLink said.
“A rising contribution from these secular drivers will represent a steady overall flow of long-term sales and profit growth over the next few years,” the company said. “Further developments within these secular drivers are ongoing with momentum to build up step by step, and add to our long-term aspirations.”
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
SK Hynix Inc warned of increased volatility in the second half of this year despite resilient demand for artificial intelligence (AI) memory chips from big tech providers, reflecting the uncertainty surrounding US tariffs. The company reported a better-than-projected 158 percent jump in March-quarter operating income, propelled in part by stockpiling ahead of US President Donald Trump’s tariffs. SK Hynix stuck with a forecast for a doubling in demand for the high-bandwidth memory (HBM) essential to Nvidia Corp’s AI accelerators, which in turn drive giant data centers built by the likes of Microsoft Corp and Amazon.com Inc. That SK Hynix is maintaining its
RSS