Sunday, December 21, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Kodak Returns To CES With Consumer Product Line
North Korea Suggests Joint Inverstigation With U.S. Over Sony Hacking
T-Mobile to Pay $90 Million To Settle Case With FCC
New Trojan Targetted Banks Wordlwide
FBI Confirms North Korea Was Behind Sony Hack
Apple Responds To BBC's Allegations Over Working Conditions In Chinese Factory
BlackBerry Returns To Cash Flow
Comparison: Quantum Dot Vs. OLED Displays
Active Discussions
Digital Audio Extraction and Plextools
Will there be any trade in scheme for the coming PSP Go?
Hello, Glad to be Aboard!!!
Best optical drive for ripping CD's? My LG 4163B is mediocre.
Hi All!
cdrw trouble
CDR for car Sat Nav
DVD/DL for Optiarc 7191S at 8X
 Home > News > Optical Storage > Taiwan ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Wednesday, July 02, 2003
Taiwan disc maker shares soar


Investors are scrambling to buy Taiwan's loss-making computer compact disk makers amid signs of a turnaround in the US$2 billion industry after last year's deep slump.

Some analysts said the rush into optical disk manufacturers -- dominated by Taiwan firms which all swung into the red in 2002 amid a supply glut -- has further to run as robust demand would spur more product price hikes.

But others were more cautious, saying that the sub-sector's price to earnings multiple was already more expensive than others in the technology sector.

Shares in CMC Magnetics Corp and Ritek Inc have soared some 60 percent and 69 percent respectively since late May, outperforming the 11.8 percent rise on the main TAIEX index.

CMC jumped 2.90 percent on Wednesday to T$28.40 and Ritek added 0.74 percent to T$27.10. The two rivals command more than 70 percent of the global market for recordable compact disks (CD-Rs), which have become popular as their storage capacity is larger than floppy disks. A steep downturn in the global computer industry hurt demand last year, but the outlook this year is better with a pick-up in PC demand and the increasing popularity of CD and DVD drives.

CD-R prices have already rebounded 31 percent to 20-22 U.S. cents each for delivery this quarter from an average 16 cents last year, which was just barely above production costs.

The turnaround was evident in improving first quarter net profits, as CMC swung to a net profit of T$406.6 million (US$11.77 million) from a T$1.99 billion loss in the previous quarter. Ritek narrowed its first quarter loss to T$641.1 million from a T$1.57 billion loss in the fourth quarter. Shares of smaller rivals Lead Data Inc and Prodisc have also benefited, rallying 213 percent and 122 percent respectively over the past two months.

However, compact disks are commodity items that run in boom and bust cycles that leave little room for timid investors.

All of Taiwan's four compact disk firms lost money in 2002, but are expected to post earnings per share of between T$1-T$2 each in 2003, fueled by rebounding prices, according to SinoPac. Profit margins could double to around 30 percent in the current quarter from the previous three months, well above the single-digit margins expected in the broader industry, analysts said.


Previous
Next
BenQ announces the DW400A DVD+RW writer        All News        BenQ announces the DW400A DVD+RW writer
BenQ announces the DW400A DVD+RW writer     Optical Storage News      BenQ announces the DW400A DVD+RW writer

Get RSS feed Easy Print E-Mail this Message

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .