Yageo Corp (國巨) yesterday reported its best quarterly net profit in nearly three years, but said that its growth momentum could be disrupted this quarter by a global chip shortage.
On top of that, market demand for consumer electronics and mobile devices has shown some softness in the Greater China region, Yageo told an online investors’ conference.
Net profit last quarter surged 87.6 percent to NT$6.81 billion (US$244.7 million) from NT$3.63 billion a year earlier, and grew 7.6 percent from NT$6.33 billion the previous quarter, company data showed.
Photo: Chang Hui-wen, Taipei Times
Gross margin improved to 41.1 percent last quarter, compared with 37.4 percent a year earlier and 41 percent in the second quarter.
“Moving into the fourth quarter, the COVID-19 pandemic has not yet eased and a supply shortage of IC components has caused shipment delays for some clients,” Yageo chief executive officer David Wang (王淡如) said.
“Clients tend to be relatively conservative in the stocking of electronic components due to China’s power restrictions,” he added.
The power curbs are likely to affect the output of Yageo’s clients and exert a certain impact on supply chains, but not on Yageo, Wang said.
“The impact on Yageo is insignificant,” he said.
The company is lowering utilization rates at factories that produce lower-margin standard products to about 70 percent this quarter to keep inventory in check, Wang said.
However, factories that make premium products continue to run at full capacity, he said.
High-end products, including passive components used in vehicles, account for about 75 percent of Yageo’s overall revenue.
Automotive passive components alone accounted for 19 percent.
“The company still sees a strong book-to-bill ratio of more than 1, thanks to robust demand from the automotive, industrial, 5G infrastructure and notebook sectors,” Wang said.
Revenue this quarter would “decline moderately” from NT$29.39 billion last quarter, but the company is striving to keep gross margin at above 39.1 percent through production optimization and raising operational efficiency, he added.
Net profit in the first three quarters soared 95.7 percent to NT$18.15 billion, compared with NT$9.27 billion in the corresponding period last year.
Earnings per share rose to NT$36.79 from NT$20.03. Revenue jumped 77.9 percent to NT$80.85 billion from NT$45.45 billion in the preceding year, after merging Kemet Corp in the second quarter.
It was late morning and steam was rising from water tanks atop the colorful, but opaque-windowed, “soapland” sex parlors in a historic Tokyo red-light district. Walking through the narrow streets, camera in hand, was Beniko — a former sex worker who is trying to capture the spirit of the area once known as Yoshiwara through photography. “People often talk about this neighborhood having a ‘bad history,’” said Beniko, who goes by her nickname. “But the truth is that through the years people have lived here, made a life here, sometimes struggled to survive. I want to share that reality.” In its mid-17th to
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
RSS