HTC Taiwan's most profitable listed firm

HTC Corporation, one of the world's largest producers of smart phones, is the island's most profitable listed firm by posting NT$26.33 (US$0.802 at US$1:NT$32.8) in earnings per share on sales of NT$50.462 billion (US$1.53 billion) in the first quarter of this year, slightly up from NT$25.5 (US$0.77) posted the year earlier.

Since the beginning of this year, HTC has shifted to focus on own-brand products by slashing the ratio of OEM and ODM (original equipment/design manufacturer) orders, which has narrowed its sales growth level.

The company said it posted NT$9.777 billion (US$298.07 million) in sales in June, down 2.81% or NT$283 million (US$8.62 million) year-on-year from NT$10.06 billion (US$306.7 million) the year earlier. In sum, the company had cumulative sales of NT$50.462 billion (US$1.53 billion) in the first half of this year, up a mere 0.92% year-on-year.

Earlier in the month, an industry insider optimistically believed HTC will see monthly sales rebound to the NT$10 billion (US$304.87 million) level in June because of the introduction of new models of smart phones.

HTC saw sales reach NT$26.86 billion (US$818.9 million) in the second quarter of this year, up 3.34% year-on-year. The company posted NT$7.092 billion (US$216.21 million) and NT$5.903 billion (US$179.96 million) in pretax and after-tax earnings, respectively in the second quarter of this year. Based on current capitalization of NT$4.327 billion (US$131.92 million), the company posted NT$13.63 (US$0.41) in after-tax EPS in the second quarter.

The company said it would see sales increase quarter after quarter for the rest of this year as it would introduce new models of smart phones in the third quarter and the industry will see a peak in the fourth quarter due to the shopping spree expectedly resulting from the Christmas season.

The company said it would see sales reach between NT$30 billion (US$914.63 million) and NT$31 billion (US$945.12 million) in the third quarter of this year, up between 10% and 15% from the preceding quarter.

To promote its own brand of HTC, the company has recently increased the number of marketing personnel in both Europe and the U.S. In addition it has also increased the number of R&D specialists in Taiwan, which has hiked its production costs.

An industry insider predicted HTC will be able to score NT$61.05 (US$1.86) in after-tax earnings per share this year, making it the most profitable listed firm in Taiwan. The company is expected to see annual sales and earnings grow 12% and 9% year-on-year, respectively this year.

source & copyright: CENS