China Steel Corp (CSC, 中鋼) yesterday reported that consolidated pretax profit for the first half of this year soared 107.8 percent year-on-year on the back of higher sales volume and unit profit as well as gains from construction.
It was also helped by an increase in nonoperating income, such as higher dividends and interest income from the company’s mining investments, China Steel said in a statement.
Pretax profit was NT$3.498 billion (US$106.42 million) from January to last month, up from NT$1.68 billion during the same period last year, the statement said.
Photo courtesy of China Steel Corp
Cumulative revenue totaled NT$188.33 billion in the first half of this year, up from NT$186.7 billion during the same period last year, with shipments of 3.96 million tonnes, it said.
The company said it is upbeat about the outlook for the second half of this year, given the steady global economic recovery and an anticipated improvement in end-market demand as major central banks cut interest rates.
Taiwan’s export momentum is also heating up, vehicle sales in the domestic market are steady, and demand for factories, offices and residential construction is rising, which would contribute to increased demand for steel related to the auto industry, home appliances and construction, the company said.
A government plan to invest trillions in national development, announced earlier this month by the Cabinet, is also expected to channel funds into domestic strategic industries, as well as urban renewal and social housing projects, boding well for the long-term outlook of steel demand, it added.
Meanwhile, an upward trend in global steel prices amid improving supply-demand dynamics would help boost product prices for shipments in the second half after hitting a trough last quarter, it said.
In a separate statement yesterday, China Steel said it would provide self-adhesive coated electromagnetic steel for electric vehicle (EV) motors to TEMICO Motor India Pvt Ltd, an Indian unit of TECO Electric & Machinery Co (東元電機).
The deal would help TEMICO Motor deliver powertrains to customers in the first quarter of next year, after the firm earlier this month announced that it had obtained powertrain orders from major Indian EV manufacturers.
It would also assist China Steel’s Indian unit in developing high efficiency, self-adhesive electromagnetic steel for EV motors in preparation for localization needs, the company said.
CHANGE OF FORTUNES: Concern over a pricey valuation and the risk of tighter US curbs on chip sales to China have poured cold water on TSMC’s bullish momentum Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares fell the most in three months yesterday upon trading resumption, joining a global technology rout as investors dramatically soured on the promises of artificial intelligence (AI). The shares declined 5.62 percent to close at NT$924 in Taipei, dragging down the benchmark TAIEX, which fell 3.29 percent to 22,119.21 points amid a technical correction, Taiwan Stock Exchange data showed. Other chip stocks also fell, with ASE Technology Holding Co (日月光投控) plunging 9.86 percent, MediaTek Inc (聯發科) dropping 2.35 percent, Realtek Semiconductor Corp (瑞昱) falling 1.33 percent and United Microelectronics Corp (聯電) retreating 1.17 percent, while Apple
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Odd lot trades of contract chipmaker Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) shares surged on Friday, although the stock faced headwinds, tumbling more than 5 percent in the session, the Taiwan Stock Exchange (TWSE) said. The volume of odd lot trades of TSMC shares totaled about 9.84 million shares on Friday, up sharply by about 400 percent from Tuesday, in a session before the local stock market closed due to Typhoon Gaemi on Wednesday and Thursday, the TWSE added. Stocks in Taiwan are usually bought or sold in lots of 1,000 shares. The nation lifted a ban on odd lots during regular