Taipei Game Show canceled
The Taipei Game Show has been canceled due to the COVID-19 pandemic, the Taipei Computer Association (台北電腦公會) said yesterday. The annual expo was originally scheduled for February, but the association on Jan. 31 postponed it until June 25 to 28 after the WHO declared the outbreak a public health emergency of international concern. As the Central Epidemic Command Center yesterday advised against indoor gatherings of more than 100 people, the association said in a statement that it and most participating companies had agreed to call off the show this year.
China approves ASE merger
The Chinese Ministry of Commerce’s Anti-Monopoly Bureau has lifted restrictions on the merger of Advanced Semiconductor Engineering Inc (日月光半導體) and Siliconware Precision Industries Co Ltd (矽品精密), ASE Technology Holding Co (日月光投控) said yesterday. The companies announced on June 30, 2016, that they planned to merge and establish a holding company. Previously, the transaction had been approved by various anti-trust authorities in different jurisdictions, including a conditional approval by the bureau on Nov. 24, 2017, the world’s largest chip packaging and testing firm said.
Kuang Hong proposes payout
Entertainment service provider Kuang Hong Arts Management Inc (寬宏藝術) yesterday said its board has proposed distributing a cash dividend of NT$4.5 per share, which suggested a dividend yield of 10.7 percent as the company’s shares closed at NT$42.05 in Taipei trading. The planned payout is greater than last year when the company distributed a cash dividend of NT$2 per share, plus a stock dividend of NT$1 each. Kuang Hong also said that the COVID-19 outbreak would negatively affect its business in the first half of this year. Its sales last year rose 39.26 percent to NT$1.61 billion (US$53.1 million), from NT$1.16 billion in 2018.
Everlight income grows
LED chip packager and tester Everlight Electronics Co (億光) yesterday reported that net income last year grew 3.68 percent year-on-year to NT$822 million, or earnings per share of NT$1.86, from a better product mix and the high-end application market. Gross margin improved 0.99 percentage points to 24.46 percent and operating margin rose 0.29 percentage points to 3.98 percent, the company said in a financial statement. However, revenue decreased 12.96 percent to NT$20.97 billion, due to US-China trade tensions and declining LED product prices. The company’s board has proposed distributing a cash dividend of NT$1.4 per share, down from NT$1.5 last year, but suggesting a payout ratio of 75.27 percent.
Cheng Shin income drops
Cheng Shin Rubber Industry Co (正新橡膠), which sells its products under the Maxxis brand, on Tuesday reported net income of NT$3.4 billion for last year, down from NT$3.52 billion in 2018, due to continued weakness in the Chinese auto market. Earnings per share fell to NT$1.04 from NT$1.09 in 2018, although revenue edged up NT$109.57 billion, compared with NT$109.49 billion in 2018. The Changhua County-based company’s board has proposed distributing a cash dividend of NT$1 per share, down from the NT$1.1 it paid out a year earlier.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a