Gold Circuit stock hits 22-year high as earnings soar

  • By Chen Cheng-hui / Staff Reporter

Shares of Gold Circuit Electronics Ltd (金像電子), a supplier of printed circuit boards (PCBs) for laptop computers, rose 14.55% last week, closing Friday at their highest level in 22 years, lifted by investor optimism about the company. revenue and earnings outlook for this year.

The company, which also produces PCBs for high-density interconnect, networking and server products, reported that last month its consolidated revenue increased 20.1% month-on-month and 37. 5% year-over-year to reach NT$3.06 billion (US$103.43 million). ), a record for the company, Gold Circuit said in a regulatory filing Wednesday.

Fubon Securities Investment Services Co (富邦投顧) attributed last month’s revenue growth to some delayed March and April shipments, strong server demand, continued customer orders, weaker New Dollar Taiwan dollar against the U.S. dollar and an increase in average selling prices, he said in a research note Thursday.

Photo: Reuters

Combined revenue for the first five months of the year rose 26.47 percent year-on-year to NT$12.82 billion, according to company data.

“Given better than expected sales in May, continued customer demand and the value of the NT dollar at approximately NT$29.5 against the US dollar, the company’s revenues in June are expected to remain at a high level. “, said Fubon.

“We raised the second quarter revenue forecast to NT$8.496 billion, a 17.3% quarter-over-quarter increase, better than our previous estimate of a quarterly increase of 7. .3%,” he said.

Gold Circuit shares rose 9.94% on Friday to close at NT$92.9, the highest since June 1999, according to data from the Taiwan Stock Exchange. So far this year, they have risen 22.24%, outperforming the TAIEX, which has fallen 9.65% over the same period, according to exchange data.

Driven by strong order momentum, the company expanded capacity by 10-15% in the first half of this year, compared to its previous estimate of a 5-10% expansion for this year as a whole.

Given its order visibility extending into the fourth quarter of this year, the company should perform better in the second half, with revenue increasing sequentially, Fubon said.

Gold Circuit is also expected to significantly increase its gross margin this quarter, from 23.02% in the first quarter, and margin improvement is expected to continue through the second half, aided by expanded capacity through the debottlenecking, better product mix and depreciation. NT dollar and Chinese yuan against the US dollar, Fubon said.

The company posted a net profit of NT$810.84 million in the first quarter, up 36.27% from NT$595.02 million a year earlier, with earnings per share (EPS) of NT$1.5.

The company’s EPS for last year was NT$5.41, the highest since 1997, when it generated NT$6.09 of EPS, and the figure could reach NT$8.14 this year and NT$9.84 next year, according to Fubon’s forecast.

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