Catcher shares plunge on Q1 re­sults

The China Post - - LOCAL -

Shares of metal cas­ing sup­plier Catcher Tech­nol­ogy Co. ( ) took a beat­ing Wed­nes­day morn­ing af­ter the com­pany re­ported worsethan-ex­pected re­sults for the first quar­ter, deal­ers said.

In­vestors also pun­ished the stock for the com­pany’s cau­tious out­look for the sec­ond quar­ter and dis­sat­is­fac­tion with its pro­posed cash div­i­dend for 2014, they said.

As of 10:52 a.m., shares of Catcher had fallen by the max­i­mum daily decline of 7 per­cent to NT$350.00 (US$11.48), with 12.67 mil­lion shares chang­ing hands. The weighted in­dex on the Tai­wan Stock Ex­change was down 0.85 per­cent at 9,872.07.

“Catcher’s bot­tom line was hit by higher la­bor costs and for­eign ex­change losses. In­vestors who had been up­beat about the com­pany pre­vi­ously rushed to cut their hold­ings soon af­ter the bourse opened to­day,” mar­ket an­a­lyst Eric Lai said.

Net Profit NT$4.65 Bil. in Q1

At an in­vestor con­fer­ence on Tues­day, Catcher said it posted a net profit of NT$4.65 bil­lion for the Jan­uary- March pe­riod, up 55.9 per­cent from a year ear­lier but down 27.7 per­cent from a quar­ter ear­lier due to slow sea­son ef­fects.

It had first quar­ter earn­ings per share of NT$6.04, com­pared with NT$3.97 a year ear­lier and NT$8.41 a quar­ter ear­lier.

The first quar­ter num­ber came in just be­low the mar­ket con­sen­sus fore­cast of about NT$6.20 and much lower than the NT$6.7- NT$6.9 fore­cast by some for­eign bro­ker­ages.

Catcher’s gross mar­gin fell to 46.6 per­cent in the first quar­ter from 47.9 per­cent in the pre­vi­ous quar­ter, a decline the com­pany at­trib­uted to higher la­bor costs. But the first quar­ter fig­ure was still higher than the 41.3 per­cent seen in the first quar­ter of 2014.

Hurt by Higher Tai­wan Dollar

The com­pany’s earn­ings were also hurt by a NT$200 mil­lion for­eign ex­change loss be­cause of a higher Tai­wan dollar.

“Now many in­vestors are shift­ing their at­ten­tion to Catcher’s sec­ond quar­ter out­look. The cur­rent sell­ing also came af­ter the com­pany said that its sales growth mo­men­tum will not pick up sig­nif­i­cantly un­til Septem­ber,” Lai said.

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