Business and Finance

Casetek Holdings’ profit dips on rising costs

Taipei Times
Date: May 05, 2015
By: Lauly Li  /  Staff reporter

Casetek Holdings Ltd (鎧勝), which supplies metal casings for Apple Inc’s MacBooks and iPads, yesterday reported its lowest quarterly net profit in two years, dragged down by rising labor costs and development expenses for a new notebook project.

Net profit dropped 19.37 percent to NT$903 million (US$29.34 million) last quarter, from NT$1.12 billion a year ago. On a quarterly basis, the figure represented a decline of about 40 percent from NT$1.5 billion.

“The new notebook project took longer than expected to develop, increasing our expenses and labor costs in China, which consequently affected profitability,” chief financial officer Jonathan Chang (張昭平) told a teleconference.     [FULL  STORY]

Innolux reports better-than-expected Q1 earnings

Focus Taiwan
Date: 2015/05/05
By: Pan Chi-i and Frances Huang

Taipei, May 5 (CNA) Innolux Corp. (群創), one of Taiwan’s leading flat panel 201505050027t0001makers, on Tuesday reported first-quarter earnings per share of NT$0.87 (US$0.03), a figure that analysts said had exceeded market expectations.

At an investor conference, Innolux said that due to the first-quarter slow season, its EPS for that period was below the NT$1.13 recorded in the previous quarter but was much higher than the NT$0.02 in the same period of last year.

“The first quarter EPS beat the market estimate of about NT$0.8 as Innolux recorded a higher gross margin for the quarter,” Marbo Securities Investment Consulting analyst Chang Chih-cheng said. “The higher gross margin largely reflected an improvement in the company’s product portfolio.”     [FULL  STORY]

PMI falls, remains in expansion mode

MANUFACTURERS KEY:The DGBAS said that the nation’s economy relies on the sector, which accounted for 55 percent of the 3.46 percent GDP growth last quarter

Taipei Times
Date: May 05, 2015
By: Crystal Hsu  /  Staff reporter

The official purchasing managers ‘index (PMI) last month remained in expansion mode, but the pace slowed from a month earlier, as demand from abroad eased in line with the low technology cycle, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday.

The PMI reading, which aims to gauge the health of the manufacturing industry, dropped to 54.7 last month, down 4.4 percentage points from 59.1 in March, suggesting the industry stayed on the course of expansion, but lost some steam in growth momentum, CIER president Wu Chung-shu (吳中書) told a news conference.

However, HSBC Holdings PLC held a more conservative view after its Taiwan Manufacturing PMI fell to 49.2 last month, the first contraction since August 2013, as operating conditions deteriorated.     [FULL  STORY]

Taiwan shares edge higher as semiconductor sector weakens

Focus Taiwan
Date: 2015/05/04
By: Lo Hsiu-wen and Ted Chen

Taipei, May 4 (CNA) Shares in Taiwan closed up 24.99 points, or 0.25 percent, at 9,845.04 Monday on turnover of NT$98.22 billion (US$3.20 billion) amid growing volatility.

Propelled by rallies in the U.S. market last Friday, the benchmark Taiex opened 34.17 points higher shortly after the opening bell.

The early momentum began dissipating, however, as semiconductor sector shares slumped, bringing the weighted index down to its intra day low at 9,800.47.     [FULL  STORY]

Barclays cuts 2015 economic forecast for Taiwan to 4%

Want China Times
Date: 2015-05-04
By: CNA

British banking group Barclays has dropped its forecast for Taiwan’s economic

A night view of Taipei, Feb. 21. (Photo/Geotechnical Engineering Office, Public Works Department, Taipei City Government)

A night view of Taipei, Feb. 21. (Photo/Geotechnical Engineering Office, Public Works Department, Taipei City Government)

growth in 2015, citing slower public spending and a weak recovery of the global economy.

In a research note on Sunday, the banking group said it expects Taiwan’s GDP to grow 4% this year, a revision of its 4.5% projection in March.

The adjustment was made based on Taiwan’s weaker than expected GDP growth of 3.46% in the first quarter — mainly as result of slow government spending and investment — a slowing Chinese economy and a more gradual recovery in the United States, Barclays said.     [FULL  STORY]

Taiwan’s fuel prices may rise for 4th consecutive week

Focus Taiwan
Date: 2015/05/02
By: Huang Chiao-wen and Frances Huang

Taipei, May 2 (CNA) Gasoline and diesel prices in Taiwan will likely rise next 2015050200081week, the fourth consecutive weekly hike, as the pressure of an oversupply in the U.S. market has been assuaged to some extent, boosting international crude oil prices, according to market sources.

Based on a floating pricing mechanism used by state-owned oil supplier CPC Corp. (中油), domestic fuel prices could rise by NT$0.3 (US$0.01) per liter next week after a NT$0.3 rise for gasoline and NT$0.4 increase for diesel this week.

The CPC adjusts domestic fuel prices on a weekly basis based on a weighted oil price formula consisting of 70 percent Dubai crude and 30 percent Brent crude.     [FULL  STORY]

Home sales see steep year-on-year fall

CONTRARY TO EXPECTATIONS:Analysts had expected home sales to reflect an uptick in the local bourse, and the soft results also contradict surveys of consumer sentiment

Taipei Times
Date:  May 04, 2015
By: Crystal Hsu  /  Staff reporter

Housing transactions in the nation’s municipalities last month saw an annual double-digit percentage decline, with the number of sales falling below 2,000 in Taipei, surprising some analysts who see the strong performance of the local bourse as an indication that consumer confidence is on the rise.

Despite the year-on-year decline, some areas showed a monthly improvement in sales, signaling the market has yet to hit bottom, analysts said.

There were only 1,983 home sales in Taipei last month, down 29 percent from the same period last year, government data show, although the local bourse briefly rose above the 10,000-point mark on large turnover attributed to improving sentiment.     [FULL  STORY]

Standard Chartered Taiwan 2015 GDP growth target unchanged

Focus Taiwan
Date; 2015/05/02
By: Wu Ching-chun and Frances Huang

Taipei, May 2 (CNA) U.K.-based Standard Chartered Bank said Saturday that it 201505020014t0001retains its forecast of Taiwan’s 2015 gross domestic product (GDP) growth of 4.3 percent unchanged, although the country reported lower-than-expected economic growth for the first quarter.

Tony Phoo, an economist of Standard Chartered Bank Taiwan, said that the country’s economy will continue to get a boost from a plunge in international crude oil prices, which has helped many enterprises here cut their operating costs.

The Standard Chartered Bank’s 4.3 percent growth forecast was higher than a government estimate of a 3.78 percent increase issued in mid-February.     [FULL  STORY]

Taiwan, Canada agree on double taxation avoidance

Focus Taiwan
Date: 2015/05/02
By: Wu Ching-chun and Y.F. Low

Taipei, May 2 (CNA) Taiwan has reached an agreement with Canada on the avoidance of double taxation at an annual bilateral economic consultation, the Ministry of Economic Affairs (MOEA) said Saturday.

The double taxation avoidance pact, which will be signed very soon, will be favorable to Taiwan businesses because it will prevent investors from being taxed in more than once on the same income, the ministry said.

Each year, there are more than 10,000 double taxation disputes involving Taiwanese businesses operating in Canada, according to the ministry.     [FULL  STORY]

Taiwan stock market held back by conservatism

Want China Times
Editorial
Date: 2015-05-01

Taiwan stocks have gradually warmed up, hitting the benchmark 10,000 points C427C0031H_N31_2015資料照片_N71_copy1for two consecutive days with the share prices marking a 15-year high, but most stock investors are indifferent, with turnover reaching only NT$130 billion (US$4.2 billion), claimed to be the coldest 10,000-point performance. Stocks in the mainland last week hit a record 1.8 trillion yuan (US$290.1 billion) in turnover, marking a new record for the world’s single-day stock market turnover, which suggests that something is ailing the Taiwan stock market.

The mainland has seen a heated stock market, boosted by a series of financial reforms which have boosted the confidence of global stock investors. The reforms, including the push for the internationalization of the renminbi, the implementation of the Shanghai-Hong Kong Stock Connect and the opening of more free trade pilot zones, have caused accelerated cross-border fund flows and stimulated the development of the mainland capital market. Although the mainland currently still adopts strict controls of its capital accounts and has lagged behind in the marketization of interest rates and foreign exchange rates, the market has anticipated China will gradually abolish its control measures and anti-market rules in line with international operations.     [FULL  STORY]