BROKERAGES
Valuations slump
The valuations of the nation’s securities brokerages have slumped as the TAIEX approaches the one-year anniversary of it moving above 10,000 points. The price-to-book ratios of local brokerages have fallen to about 0.7, the lowest level in recent years, data compiled by the Taiwan Stock Exchange showed. Despite significantly higher daily turnover of more than NT$100 billion (US$3.36 billion) during 10 out of the past 12 quarters, investors have been lukewarm on higher fee income resulting from higher trading volume.
TELECOMS
CHT mulling Internet bank
Chunghwa Telecom Co (CHT, 中華電信) chairman David Cheng (鄭優) yesterday confirmed that the company is exploring plans to open an Internet-only bank by partnering with local state-run lenders. The telecom has been in talks with Bank of Taiwan (臺灣銀行) and Mega International Commercial Bank (兆豐銀行), Cheng said, adding that a plan would begin to take shape in the next month or two. CHT has a sizeable pool of subscribers and it could leverage that advantage to transform a phone number into a virtual bank account that could be used for daily transactions, industry observers said. The Financial Supervisory Commission last month said that it would begin accepting license applications for two Internet-only banks and that it has been in talks with Japan’s Line Corp and Rakuten Inc.
TELECOMS
GSMA-certified lab planned
Asia Pacific Telecom Co (亞太電信) yesterday announced plans to build the nation’s first GSMA-certified laboratory to speed up the development of the nation’s Internet of Things (IoT) industry. The laboratory would be the 36th globally and support the development of narrow-band IoT as well as LTE-M standards, which aims to enable a wide range of devices and services to be connected using cellular telecommunication bands while maintaining energy efficiency. The telecom would invite module and end device makers to take advantage of its laboratory, it said.
ENERGY
CTCI wins terminal bid
CTCI Corp (中鼎工程), a leading engineering services provider, has won a tender for a US$240 million liquefied natural gas terminal project in India for conglomerate Adani Group. Adani Group yesterday confirmed that CTCI won the bid and on April 24 signed an agreement with Adani Energy, a unit of the Indian conglomerate. It is the largest contract secured by a Taiwanese company in the 18 nations targeted by the government’s New Southbound Policy since it was launched in May 2016. The terminal is to be built at Dhamra Port in Odisha state and it is to have an annual capacity of 5 million tonnes of liquefied natural gas, Adani Group said. The firm did not disclose any other details of the tender, such as when construction is expected to start.
BANKING
Payment system deployed
Taipei Fubon Commercial Bank (台北富邦銀行) on Sunday announced that it has deployed a blockchain-based payment system for restaurants and merchants near National Chengchi University after development began in March last year. The payment system utilizes the Istanbul Byzantine Fault Tolerance algorithm, which cuts the transaction time to less than 1 second, making it suitable for wider adoption, the bank said, adding that businesses benefit from improved bookkeeping by using blockchain-based payment systems.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
Printed circuit board (PCB) maker Global Brands Manufacture Ltd (精成科技) is to fully acquire Japanese peer Lincstech Co for about NT$8.4 billion (US$256.9 million) as the company aims to add high-end PCBs to its PC-centric product lineups. The company also expects the deal to help expand its manufacturing sites in Southeast Asia, as local firms diversify to mitigate geopolitical risks. “The acquisition will mean an important step for the company to further expand its presence in Southeast Asia and globally,” Global Brands Manufacture chief financial officer Weng Chia-yu (翁家玉) said at a news conference in Taipei yesterday. The company has set up manufacturing
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico’s luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW. Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price, industry experts say. It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world. The high-end segment of the market registered a sales drop
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