Business and Finance

Holtek posts its highest single-quarter revenue on record

The China Post
Date: April 25, 2017
By: Kuan-lin Liu

Taiwan-based semiconductor design center and provider Holtek Semiconductor Inc. reported a record-high single quarter revenue during an earnings conference it hosted on Monday.

With the increase in workdays this past March, Holtek grossed a total of NT$446 million last month, a historical high for the company. The March revenue contributed to an overall first quarter revenue of NT$1.086 billion, another record high for any single quarter in the company’s history.

Holtek’s first quarter figures surpasses its fourth quarter revenues of NT$1.085 billion by 0.1 percent, making this year’s first quarter an atypically high-performing quarter — with a 19.6 percent year-on-year increase — for a traditionally seasonal-low time for the company.

The company’s representatives went into more detail during the conference, stating that first quarter after-tax profit was NT$185 million, posting a year-on-year increase of 10.2 percent and a quarter-on-quarter decrease of 10.6 percent.    [FULL  STORY]

Cosmos Hotel group eyes tourism in central Taiwan

Taipei Times
Date: Apr 24, 2017
By: Crystal Hsu / Staff reporter, in Taichung

Cosmos Hotel & Resorts Group (天成飯店集團) has stood by its expansion plans in an increasingly competitive market by launching a new facility in Taichung to capitalize on tourism demand in central Taiwan.

ICASA (回行旅), the second property under the group’s Cosmos Creation (天成文旅) brand, offers 100 rooms, the group’s assistant marketing director, Blythe Chao (趙芝綺), said in an interview on Wednesday.

“Despite intensifying competition, the group pressed ahead expansion plans and is upbeat about a 70 percent occupancy for ICASA in the first year,” Chao said.

The group, which operates six hotels and one independent restaurant in Taiwan, plans to add a third Cosmos Creation outlet in Taipei and a luxury resort hotel in Hualien’s Ruisui Township (瑞穗) this year, while expanding villa facilities at Yaward Resort Taoyuan (悅華大酒店), she said.    [FULL  STORY]

Prices at Taiwan’s gas pumps to fall after three weeks of rises

Radio Taiwan International
Date: 2017-04-23

Taiwan’s gas and diesel prices are set to fall this week, following three consecutive weeks of increases. The new prices will go into effect at midnight on Sunday, moving into Monday morning.

The state-run oil company, CPC Corporation, Taiwan, has announced that prices will go down NT$0.5 per liter for gas and NT$0.6 for diesel (between US$0.01-$0.02).

The new prices per liter will be: for super diesel, NT$21.8; for 92 octane unleaded, NT$24.2; for 95 octane unleaded, NT$25.7; and for 98 octane unleaded, NT$27.7 per liter.

Officials say the reduction is the result of a downward pressure on crude prices due to technical factors and a projected increase in the output of shale oil in May in the United States.    [FULL  STORY]

Defunct TransAsia Airways finds buyers for 11 of its aircraft

Focus Taiwan
Date: 2017/04/23
By: Tien Yu-pin and S.C. Chang

Taipei, April 23 (CNA) TransAsia Airways, which ended operations on Nov. 22, 2016

(CNA file photo)

because of insurmountable financial woes, has reached an agreement with a buyer to conditionally acquire 11 of its aircraft for US$364 million, the airline said.

The highest bidder for the 11-plane package consented, however, to TransAsia selling any of the 11 airplanes to the second highest bidder because the deal could take a long time to complete, the airline said in a statement released on Sunday.

Based on that condition, TransAsia has decided to sell four A330s and A321s to the second highest bidder, with whom it will sign a contract on April 25, the statement said.
[FULL  STORY]

Taipei home prices might be stabilizing

SURVEY:Knight Frank said the drop in Taipei’s prices last year meant it bucked the average for price increases for the 150 cities tracked in its market sentiment ranking

Taipei Times
Date: Apr 24, 2017
By: Crystal Hsu / Staff reporter

Home prices in Taipei fell 1.2 percent last year from a year earlier, but the market has shown signs of stabilization this year as evidenced by a sharp increase in transactions last quarter, global real-estate consultancy Knight Frank said in a survey released last week.

Taipei’s decline bucked the average price increase of 6.6 percent for 150 global cities tracked by Knight Frank and earned Taipei the 133th berth on the company’s market sentiment ranking, the quarterly survey showed.

Taipei’s performance was better than Singapore’s 2.6 percent fall and Russia’s 15 percent price correction, the survey said.

Nine Chinese cities made the top 10 list last year, with Nanjing taking first place with a 41.1 percent price increase, the poll found.    [FULL  STORY]

Manufacturing output growth forecast upgraded

Focus Taiwan
Date: 2017/04/22
By: Huang Li-yun and Frances Huang

Taipei, April 22 (CNA) The government-sponsored Industrial Technology Research Institute’s Industrial Economics and Knowledge Center (IEK) has raised its forecast for growth in production value in Taiwan’s manufacturing sector for 2017 because of a recovery in the global economy.

The IEK said that the output of Taiwan’s manufacturing sector for 2017 will rise 3.2 percent from a year earlier to NT$17.43 trillion (US$573 billion). That’s an upgrade from its previous estimate of a 2.52 percent rise made in January.

With the world’s economy on the way to a recovery, the IEK said, prices of raw materials such as crude oil prices have stabilized and even rebounded, which has reduced the risks of a fall in export value.    [FULL  STORY]

Formosa Petrochemical announces fuel price cut for next week

Focus Taiwan
Date: 2017/04/22
By: Wei Shu and Frances Huang

Taipei, April 22 (CNA) Formosa Petrochemical Corp. (台塑石化), a privately owned fuel

(CNA file photo)

supplier, said on Saturday it will lower its domestic gasoline and diesel prices next week after crude oil prices in the U.S. market fell below US$50 per barrel overnight.

Crude oil prices faced downward pressure this week amid rising concerns over a global glut, offsetting optimism that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers could extend a deal to cut output for another six months, analysts said.

For the week, Brent futures, the global benchmark, fell 2 percent in London, while U.S. crude futures ended down 2.2 percent.    [FULL  STORY]

Target price on Largan shares raised to NT$6,180

Focus Taiwan
Date: 2017/04/22
By: Jeffery Wu, Han Ting-ting and Frances Huang

Taipei, April 22 (CNA) A European brokerage has raised its target price on shares of

(CNA file photo)

Taiwan-based smartphone camera lens supplier Largan Precision Co. (大立光) to NT$6,180 (US$203) because of the technology edge Largan has on its competitors.

In a research note, the European brokerage said Largan’s advanced production technology and design ability will enable the company to ask for higher product prices and send its gross margin higher.

Because of that optimism, the brokerage raised its target price for Largan from the previous NT$4,950 to NT$6,180, the highest among foreign brokerages that follow the stock, and maintained a “buy” rating.

CNA cannot identify the brokerage because media outlets in Taiwan are not allowed to report the name of a foreign brokerage when it gives price forecasts for specific stocks.
[FULL  STORY]

‘Green’ energy certification aims to attract investors

 

Taipei Times
Date: Apr 22, 2017
By: Lauly Li / Staff reporter

The Ministry of Economic Affairs yesterday established the National Renewable Energy

Minister of Economic Affairs Lee Chih-kung, second left, applauds at an unveiling ceremony to mark the opening of the National Renewable Energy Certificate center in Taipei yesterday.  Photo courtesy of the Ministry 3of Economic Affairs

Certificate center as part of efforts to attract foreign enterprises that pledge to use “renewable” energy when investing or placing orders with local manufacturers.

“Google and some foreign companies used to raise doubts over the ‘purity’ of the renewable energy supply here. Certificates issued by the center could ease such concerns,” Minister of Economic Affairs Lee Chih-kung (李世光) said, adding that both Google and Apple Inc have welcomed the center.

The Taipei-based center is to issue its first renewable energy certificate (REC) before the end of June at the earliest, according to the Bureau of Standards, Metrology and Inspection.    [FULL  STORY]

Foreign currency-denominated bound sales up over 50%

Focus Taiwan
Date: 2017/04/21
By: Tsai Ui-chu and Frances Huang

Taipei, April 21 (CNA) The value of foreign currency-denominated bonds issued in Taiwan was up more than 50 percent from a year earlier from Jan. 1 to April 15, the Financial Supervisory Commission (FSC) said Friday.

The spike in bond sales came as many foreign entities rushed into the market before the government tightens rules on how quickly bond issuers can allow investors to redeem their funds, the FSC said.

Concerns that interest rates may rise in the future also led bond issuers to more aggressively sell their debt early in the year.    [FULL  STORY]