Listed man­u­fac­tur­ers’ net profit hits new high in H1

The China Post - - LOCAL -

Man­u­fac­tur­ers listed on the lo­cal main board and over-the-counter (OTC) mar­ket posted a more than 14 per­cent year-on-year in­crease in net profit for the first half of this year, with earn­ings hit­ting a new record high, largely on the back of fall­ing op­er­at­ing costs, ac­cord­ing to the Min­istry of Eco­nomic Af­fairs (MOEA).

Sta­tis­tics com­piled by the MOEA showed that listed man­u­fac­tur­ers in Tai­wan recorded NT$595.5 bil­lion (US$18.16 bil­lion) in net profit for the first six months of the year, up 14.6 per­cent from a year ear­lier.

In the six-month pe­riod, elec­tron­ics com­po­nent mak­ers’ net mar­gin stood at 11.7 per­cent, the high­est among the all seg­ments, largely due to a strong de­mand for wafers made us­ing ad­vanced tech­nol­ogy pro­cesses. The chem­i­cal seg­ment came in sec­ond with net mar­gin at 7.8 per­cent, the data in­di­cated.

De­spite a spike in net profit, these com­pa­nies saw their rev­enue grow­ing only 0.5 per­cent from a year ear­lier to NT$10.87 tril­lion, ac­cord­ing to the data.

The MOEA said that the data in­volved a to­tal of 972 man­u­fac­tur­ers listed on the lo­cal eq­uity mar­ket.

In terms of the sec­ond quar­ter of this year, the 972 listed man­u­fac­tur­ers in the coun­try posted NT$309.9 bil­lion in net profit, up 10.96 per­cent from the NT$279.3 bil­lion seen over the same pe­riod of last year, the min­istry said.

The elec­tron­ics com­po­nent seg­ment en­joyed the high­est earn­ings of NT$133.3 bil­lion in the sec­ond quar­ter, fol­lowed by the chem­i­cal ma­te­rial seg­ment with NT$47.1 bil- lion, the com­puter/elec­tron­ics/op­to­elec­tron­ics seg­ment with NT$47 bil­lion, and the oil/coal seg­ment with NT$25 bil­lion.

These man­u­fac­tur­ers posted a net mar­gin of 5.7 per­cent in the sec­ond quar­ter of this year, up 0.7 per­cent­age points from a year ear­lier, the MOEA said, adding that cost cut­ting helped the oil/coal seg­ment and the chem­i­cal ma­te­rial seg­ment en­joy an in­crease of 10.3 per­cent­age points and 7.3 per­cent­age points, re­spec­tively, in net mar­gin in the sec­ond quar­ter.

But sales were weak. In the AprilJune pe­riod, the 972 com­pa­nies posted NT$5.44 tril­lion in sales, down 2 per­cent from a year ear­lier, the data showed.

The com­puter/ elec­tron­ics/ op­to­elec­tron­ics seg­ment posted 3.6 per­cent year-on-year growth in sales in the sec­ond quar­ter, while other seg­ments, such as elec­tron­ics com­po­nent mak­ers, base me­tal sup­pli­ers, chem­i­cal ma­te­rial firms, oil/coal sup­pli­ers and food mak­ers, suf­fered a fall in sales dur­ing the same pe­riod.

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