BizLink Holding 2013 net profit up over 80%
March 17, 2014, 12:04 am TWN
TAIPEI--BizLink Holding Inc. (貿聯集團), a connector, cable assembly and wire harness supplier, said yesterday that its net profit for 2013 rose more than 80 percent from a year earlier, with market analysts attributing the growth largely to rising demand for electric car components.
BizLink has been dubbed as one of the “Tesla Motors stocks” after the company started to supply components to the world's largest electric car maker.
In 2013, BizlLnk posted NT$564 million (US$18.61 million) in net profit, up 83.11 percent from a year earlier, with earnings per share (EPS) of NT$7.28, compared with NT$4.49 recorded in 2012. The 2013 net profit and EPS both hit record highs.
In a board meeting held a day earlier, BizLink proposed to issue a dividend of NT$5.5, comprising a cash dividend of NT$5 and a stock dividend of NT$0.5. Based on the 2013 EPS, its dividend payout ratio stood at 75.5 percent.
Analysts said BizLink, which was incorporated in the Cayman Islands and launched a primary listing on the Taiwan Stock Exchange in 2011, has been spotlighted by the market due to its business ties with Tesla.
With many institutional investors upbeat about Tesla's shipments, investor interest in the local suppliers to the U.S. carmaker, such as BizLink, has accelerated. Morgan Stanley has forecast that Tesla's sales, which amounted to US$2.5 billion in 2013, will increase more than 10-fold by 2016.
In 2013, BizLink shares posted the fourth-largest gains of 299.68 percent, behind DRAM chip supplier Inotera Memories Inc. with a 468.48 percent increase, printed circuit board supplier Cheer Time Enterprise Co. with a 433.89 percent rise, and headset maker Merry Electronics Co. with 369.78 percent growth.
So far this year, shares of BizLink have increased more than 30 percent to close at NT$166.00 Friday.