TPK Holding to Raise Capital Spending to Over NT$20B.
2011/03/08 | By Steve ChuangTaipei, March 8, 2011 (CENS)--Responding to the rising popularity of smartphones and tablet PCs that is significantly fueling demand for touch panels over the past few years, TPK Holding Co., Ltd., a large producer of touch panels in Taiwan, will raise its equipment budget to exceed NT$20 billion for 2011 to retain its lead.
The maker's chief financial officer Freddie Liu said that his firm is budgeting NT$20.339 billion this year, more than double the NT$9.4 billion last year, mainly to reinforce vertical integration to boost operating efficiency, adding that the firm will appropriate part of earnings and cash, apply for loan and issue new shares to meet the budget.
The president Tom Sun pointed out that in addition to expanding output of key components for touch panels as touch sensors and protective glass, the firm will also use the budget to further automate manufacturing to lower labor cost and enhance production efficiency, aiming to sharpen competitiveness against larger rivals as the Hon Hai Group.
The firm reported full-year revenue of NT$59.599 billion and net profits of NT$4.742 billion, including NT$2.165 billion posted in the fourth quarter in 2010, with EPS (earnings per share) of NT$23.03.
Despite increasingly intense rivalry from touch panel makers and system assemblers, institutional investors said that TPK holding is expected to remain Apple Inc's largest supplier of touch panels in the coming few years as long as such touch panels are installed in the iPhone and iPad.
Sales and Profits by TPK Holding (2010) | |||
Period |
| Performance | Growth & Comparisons |
Q4 | Sales Revenue | NT$26.796 bn. | 14.3% (quarterly) |
Gross Profit Rate | 16.4% | 14.3% | |
Net Profits | NT$2.165 bn. | 92% | |
EPS | NT$10.51 | NT$5.49 | |
2010 | Sales Revenue | NT$59.599 bn. | 219% (yearly) |
Gross Profit Rate | 16.8% | 22.6% | |
Net Profits | NT$4.742 bn. | 105% | |
EPS | NT$23.03 | NT$11.82 | |