Solar cell and module supplier TSEC Corp (元晶太陽能) yesterday reported a 19 percent sequential decline in second-quarter net profit to NT$143 million (US$4.5 million), dragged by NT$167 million in depreciation costs as the company replaced some equipment with new machines to make larger solar modules.
Net profit in the first half of this year skyrocketed to NT$319 million from NT$43.27 million a year earlier. Earnings per share (EPS) climbed from NT$0.1 to NT$0.67, its most robust performance for the period in seven years, while gross margin rose from 6.9 percent to 10 percent.
TSEC said the first-half results reflected its market share gains in high-efficiency solar modules, which also helped boost its competitiveness.
Photo: Chang Hui-wen, Taipei Times
The company expects business to further improve as solar installations in Taiwan picks up, thanks to lower raw material costs and the government’s green energy policy, TSEC said in a statement.
Last week, rival Sino-American Silicon Products Inc (SAS, 中美矽晶) also said it was positive about a recovery in Taiwan’s solar market.
“The first half of this year was the trough for our solar business, and the second-half would be flat or slightly better than the first half,” SAS chairperson Doris Hsu (徐秀蘭) told investors during an online conference on Friday.
With new M10 perk solar products ready for shipments, SAS expects to see revenue contribution in the second half, Hsu said.
SAS reported that average selling prices rebounded last month and this month, after prices experienced drastic declines from December last year.
Hsu said the uptrend should continue through the end of this year.
The company said it expects solar demand in Taiwan to pick up as the government is likely to speed up reviews of solar projects to meet its annual renewable energy installation target, following significant delays in the first half.
SAS’ first-half net profit surged 76.5 percent to NT$9.44 billion, compared with NT$5.35 billion a year earlier. EPS jumped to NT$8.36 from NT$5.26.
They were the strongest first-half figures in the company’s history, driven primarily by its subsidiary GlobalWafers Co (環球晶圓), which contributed about 88 percent to SAS’ revenue.
Gross margin slid to 35.3 percent from 40.3 percent the prior year.
Meanwhile, solar module maker Motech Industries Inc (茂迪) yesterday also reported robust first-half net profits, surging 79 percent to NT$179 million from NT$99.88 million in the same period last year. EPS rose to NT$0.46 from NT$0.28.
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