Evergreen Marine Corp (長榮海運), the nation’s largest container shipping firm in terms of fleet size, on Tuesday reported a net profit of NT$17.16 billion (US$618 million) for last month, 14 times more than a year earlier due to rising freight rates.
The firm’s earnings per share were NT$2.91 last month, equivalent to about 41 percent of the NT$7.04 earnings per share it made in the first quarter.
Revenue increased 145 percent year-on-year to NT$34.4 billion, Evergreen said in a filing with the Taiwan Stock Exchange.
Evergreen said that unprecedented increases in freight rates and improvements in operating expense controls enabled it to obtain a higher gross margin.
The Shanghai Containerized Freight Index, a barometer of sea freight rates, continued to rise last month, hitting 3,495 points at the end of the month, 3.8 times more than its 920 points a year earlier, data compiled by the Shanghai Shipping Exchange showed.
For Evergreen, revenue generated from the Asia-Europe route and the Asia-US route accounts for 65 percent of its total revenue, and shipping rates for the two major routes also increased significantly, the data showed.
Evergreen revealed its sales and profits at the request of the exchange, which has implemented a trading alert mechanism on highly volatile securities.
The shipping firm’s shares have soared 190 percent over the past 60 days and skyrocketed 280 percent over the past 90 days, the exchange said on its Web site.
The company’s shares yesterday rose 0.43 percent to close at NT$116, compared with NT$50 on April 9 and NT$38.05 on March 10, exchange data showed.
Evergreen was the most actively traded stock on the exchange yesterday with a turnover of NT$56 billion, accounting for 14 percent of the exchange’s total transaction of NT$398 billion, the data showed.
The robust freight rates also benefited freight forwarders such as T3EX Global Holdings Corp (台驊) and Dimerco Express Group (中菲行).
T3EX reported that sales rose 82 percent annually to NT$2.66 billion last month thanks to rising demand and high shipping rates, while Dimerco saw its revenue gain 4.5 percent to NT2.8 billion last month, as declining sales in the air forwarding business were offset by revenue increases in sea cargo forwarding operations.
Major PC vendors expect a shortage of key components to last another 12 months until the second quarter of next year, when PC demand wanes after two years of robust expansion, a UBS analyst said yesterday. Concern has risen among investors that PC demand could weaken as the US and European economies reopen from COVID-19 lockdowns and gradually return to in-person business activities. At the annual Taiwan Conference that began on Monday, UBS analysts said they had similar discussions with companies in PC supply chains, and the feedback from major PC vendors indicated that demand remained quite strong on the back of
Taiwan and China are to build more new high-volume semiconductor fabrication plants this year and next year than any other country, together contributing more than half of all new fabs in the world by constructing eight each, SEMI said in a quarterly report yesterday. Global chipmakers are to start building 19 new high-volume fabs by the end of this year and another 10 next year to meet accelerating demand for chips from the communications, computing, healthcare, online services and automotive sectors, SEMI, an association that represents the global semiconductor sector, said in its quarterly report. “Equipment spending for these 29 fabs is
MOVING ON UP: Taiwan improved in all four areas measured by the IMD, making its biggest leap, from 17th to sixth place, in economic performance Taiwan moved up three spots from last year to place eighth, its best performance since 2013, in the latest annual world competitiveness rankings, released yesterday by the International Institute for Management Development (IMD). Innovation, digitalization, welfare benefits and social cohesion are critical to economic performance, with Switzerland, Sweden, Denmark, the Netherlands and Singapore making up the top five on the list this year, the Switzerland-based institute said, after grading 64 countries and regions based on economic performance, infrastructure, and government and business efficiency. “Leading performers are characterized by varying degrees of investment in innovation, diversified economic activities and supportive public policy,” IMD
‘MATTER OF SURVIVAL’: Vice Premier Liu He is to lead the development of ‘third-generation’ chips, a field not yet dominated by any nation or company Chinese President Xi Jinping (習近平) is renewing his years-long push to achieve technology self-sufficiency by tapping a top deputy to shepherd a key initiative aimed at helping domestic chipmakers overcome US sanctions. Chinese Vice Premier Liu He (劉鶴), Xi’s economic czar whose sprawling portfolio spans trade to finance and technology, has been tapped to spearhead the development of so-called “third-generation” chip development and capabilities, and is leading the formulation of a series of financial and policy supports for the technology, people with knowledge of the matter said. It is a nascent field that relies on newer materials and gear beyond traditional silicon,