Wire harness maker BizLink Holding Inc (貿聯控股) yesterday reported its highest earnings per share in seven quarters as it announced the acquisition of electrical equipment maker Easys s.r.o.
BizLink’s earnings per share for the second quarter of the year were NT$6.13, the highest since the third quarter of 2022, when it was NT$7.64, company data showed.
That came as the company’s net profit in the second quarter rose by 72.64 percent from NT$580.67 million (US$18.25 million) the previous quarter to NT$1.002 billion. On an annual basis, net profit surged 127.32 percent from NT$440.99 million, the company said in an earnings report.
Photo: Fang Wei-chieh, Taipei Times
While second-quarter revenue only grew 4.5 percent from the previous quarter and was flat from a year earlier at NT$12.98 billion, BizLink said its earnings growth was attributable to “ongoing efficiency and productivity efforts as well as favorable product mix,” which helped boost its gross margin to a 7.5-year high at 28.11 percent and raise its operating margin to a double-digit percentage again at 11.42 percent.
“The global operating environment remained challenging given rising geopolitical and macro-economic risks, but our strong execution showed through,” BizLink said.
The company said its strong bottom line allowed it to generate positive free cash flow for the seventh consecutive quarter last quarter.
“Our healthy cash balance gives us more room to make strategic moves to allocate capital for various growth projects, engage in [merger and acquisitions] M&A and continue to deleverage,” it said.
BizLink, which supplies wiring harnesses for battery management systems in Tesla Inc’s electric vehicles, said sales generated by its industrial applications segment accounted for 40 percent of total sales last quarter, followed by the information technology (IT) and data communications business’ 23 percent, 18 percent each from the automotive and electrical appliances segments, and 1 percent from other segments.
The industrial applications segment might see sales begin to grow this quarter, on the back of rising demand for capital equipment and tailor-made products, while factory automation and healthcare businesses are expected to bottom in the second half of the year, the company said.
In addition, the outlook for the IT and data communications segment looks promising, the company said, adding that US cloud service providers have allotted for more spending in new data center infrastructure and servers worldwide, which would boost data and power solutions sales.
However, BizLink said it remains conservative on the automotive segment given the ongoing industry downcycle, despite initial signs of bottoming.
The company also said it is to acquire Easys for 51.5 million euros (US$57.54 million), which would bolster its ability to fulfill semiconductor capital equipment demand using the additional capacity and new capabilities in Eastern Europe, adding that it expects to sign the definitive purchase agreement to wholly own Easys before the middle of next month.
In the first half of the year, its net profit was NT$1.58 billion, up 48.22 percent from a year earlier, earnings per share rose from NT$6.76 to NT$9.69 and revenue fell 0.83 percent to NT$25.46 billion, company data showed.
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
RSS