Elevator manufacturer Golden Friends Corp (崇友實業) reported a 30 percent year-on-year increase in net profit for the third quarter to NT$322 million (US$10.34 million), driven by steady shipments of new elevators and resilient replacement demand.
Revenue from new installations accounted for 47.85 percent of overall sales in the quarter, while replacement projects contributed 11.33 percent, highlighting its balanced business model, the Taipei-based company said.
Smooth shipments and replacement demand supported consistent growth in operations and revenue, Golden Friends said.
Photo: CNA
Moreover, long-term investment in maintenance services has improved earnings quality, it said.
A comprehensive service framework, a well-trained technical team and a digitalized dispatch system enable the firm to respond promptly to customer needs, improve service efficiency and sustain high renewal rates, it said.
That explains why recurring income from maintenance and service has remained a key profitability driver, it said.
Gross margins improved to 31.32 percent, attributed to a diversified product mix across residential, healthcare and commercial segments, Golden Friends said.
The company also credited tighter procurement discipline, optimized component sourcing, more efficient inventory management and cost-structure adjustments for margin gains.
It expects demand from urban renewal projects, renovations at aging buildings and industrial zone development to continue to support growth in new installations and replacements, it said.
With a healthy backlog of new orders, Golden Friends plans to deepen supply-chain integration, streamline engineering processes and enhance labor flexibility to ensure smooth execution, it said.
In the first three quarters of this year, net profit grew 19.74 percent to NT$895 million, or earnings per share (EPS) of NT$5.06, a record for the nine-month period.
In contrast, housing agency Hiyes International Co (海悅國際開發) faced significant headwinds, reporting a 70.8 percent decline in net profit in the first three quarters to NT$596 million, or EPS of NT$3.61.
Hiyes International said that the drop was due to a weak presale housing market, with few new project launches in the third quarter, and limited room to adjust prices on existing developments.
Despite mild easing in September, mortgage terms remain restrictive, which is keeping the real-estate brokerage sector in a seasonal lull, it said.
Hiyes International booked NT$200 million in non-operating losses due to tariff pressures, housing policy challenges and higher financing costs, it said.
Tax expenses further reduced income by NT$300 million, it said.
The company said that it would continue to leverage its nationwide brokerage network and targeted sales strategies to capture demand across Taiwan’s real-estate market, ensuring a steady flow of agency projects.
Revenue momentum is expected to be stable this quarter, underpinned by contributions from key property projects near high-speed rail stations in Miaoli County and Taichung, it said.
It would closely monitor the central bank’s credit policies and the availability of mortgage resources for buyers with real demand — key factors that could revive market activity, it added.
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