Chung-Hsin Electric and Machinery Manufacturing Corp (中興電工) yesterday reported record-high profit and revenue in the second quarter, as it continued to benefit from new orders for green energy-related electrical equipment and renewal projects for Taiwan Power Co’s (Taipower, 台電) heavy-duty power facilities.
Net profit in the April-to-June quarter soared 230.8 percent from a year earlier to NT$897.92 million (US$27.66 million), second only to the record profit of NT$953.61 million it made the previous quarter, Chung-Hsin Electric said in a regulatory filing.
Earnings per share (EPS) were NT$1.82 for last quarter, compared with losses per share of NT$1.42 a year earlier. The company posted record EPS of NT$1.93 in the first quarter.
Photo: Cheng Shu-ting, Taipei Times
Second-quarter revenue rose 24.34 percent year-on-year to NT$6.13 billion, but gross margin and operating margin fell from a year earlier to 25.95 percent and 18.24 percent respectively, Chung-Hsin Electric said.
The company has an order backlog of more than NT$40 billion, with new orders mainly including Taipower’s engineering projects for switchgears, converters, power distribution systems and transformer substations, it said.
That comes as the state-run utility has launched a 10-year program to enhance power grid resilience with the aim of speeding up the renewal of heavy-duty power facilities to prevent unexpected events and emergencies.
GREEN DEVELOPMENT
Taiwan’s efforts to accelerate green energy deployment are also resulting in more engineering projects for offshore wind power substations, which are being offered companies such as Chung-Hsin Electric.
Taiwan remains Chung-Hsin Electric’s biggest market, as the company is the only domestic manufacturer to have secured Taipower’s 345 kilovolt gas-insulated switchgear certification.
As the company expects healthy overseas demand, it expanded its production capacity by 20 percent in January and plans to invest in a new plant in Chiayi County later this year to boost its production capacity by another 20 percent, with the US market likely to be a new sales growth driver, Yuanta Securities Investment Consulting Co (元大投顧) said in a research note.
In the first half of this year, Chung-Hsin Electric’s net profit surged 3,044.6 percent from a year earlier to NT$1.85 billion.
It posted EPS of NT$3.75, up from NT$0.14 a year earlier.
Profit in the first half was also a record for the period.
Revenue grew 13.94 percent to NT$12.27 billion in the first six months, company data showed.
Gross margin decreased 3.5 percentage points to 27.74 percent and operating margin fell 5.3 percentage points to 19.1 percent, the data showed.
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