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PChomestore Chairman Sees Huge Growth Potential in Taiwan

2011/04/07 | By Philip Liu

Following its meteoric rise in recent years, there is still tremendous growth potential for PChomestore Inc., as the market potential of Taiwan e-commerce could top NT$1.5 trillion (US$51.7 billion) to accommodate 1 million stores, says Chan Hung-chih, chairman of PChome Online and PChomestore Inc., at the investors' conference on March 17 to announce the listing of PChomestore on the GreTai Market (over-the-counter), also noting that PChomestore has boosted the number of stores 100 times to 10,000.

PChomestore, a spinoff from PChome Online, plans to float 1.21 million new shares in the IPO (initial public offering) at NT$150 (US$5.2) per share, thereby raising NT$181 million (US$6.2 million) of capital. The company's shares shot up to NT$206 (US$7.1) per share on the day of the IPO.

Chan pointed out that PChomestore's core operation is “PaaS” (Platform as a Service), offering services and tools to small and medium-sized enterprises to run online stores, such as merchandise shelving, marketing and advertisement, account management, online payment, and logistics.

As many as 10, 000 online stores run on PChomestore platforms to offer 3.25 million products, 2% of Taiwan's total wholesalers and retailers.

Chan says that Taiwan's e-commerce market has NT$1.5 trillion in potential, or 50% of total retail sales to accommodate 1 million online stores.

Taiwan's e-commerce, says Chan, will grow rapidly in the next five years, enabling online stores to rack up handsome profits. PChomestore achieved after-tax net profit of NT$27.6 million (US$950,000), or NT$2.18 in earnings per share on sales of NT$249 million (US$8.6 million) generated from April 30 through Dec. 31, 2010.