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Taiwanese Power Supply Makers Enjoy Solid Profits in 1st Half of 2010

Taiwanese Power Supply Makers Enjoy Solid Profits in 1st Half of 2010

Write: Ellard [2011-05-20]

With the global market for consumer electronics booming, several Taiwanese power supply makers have enjoyed robust EPS earnings per share in the first half of this year, and are expected to witness brisker sales and profit performance in the third quarter, according to institutional investors.


Among the firms already revealing its profits for the first half, FSP Group earned NT$468 million in net profits, or NT$2.09 per share. However, suppressed by rising material and labor costs, the firm`s gross profit rate of 13.37% for the period was lower than 14.39% achieved a year earlier.


But FSP Group has stressed that its gross profit rate will bottom out in the third quarter, when the firm will start delivery of power supplies for use LED-backlit TVs and LED lightings, which will surely help to fuel its sales revenue and profits.


On the other hand, Delta Electronics Inc., the largest supplier of power supplies for notebook PCs in the world, has yet to release its financial report for the first half of the year, but is believed to post net profits of over NT$7 billion, or around NT$3 per share, for the period after scoring profits of more than NT$4 billion in the first quarter, sharply up 40% from a quarter earlier.


Foreign institutional investors project the firm`s gross profit rate for the second quarter to be one percentage point more than 20% attained in the first quarter. Hopefully, the firm will post more banner sales and profit performance in the third quarter to hold its leading position in the line.


Coincidentally, AcBel Polytech Inc. is expected to report EPS of NT$1.1-1.2 for the first half of the year. The company`s EPS sharply soared by 133% to over NT$0.77 in the second quarter from NT$0.33 posted in the first quarter because of its successful strategy to explore business opportunities brought by cloud computing technologies.


AcBel`s outlook for the third quarter is also promising, as the firm, affiliated with Kinpo Group, has secured a great deal of contract orders from Compal Electronics Inc., while faring well in the segment for models used in cloud computing-based devices.