Taiwan Cement posts record quarterly profits

Taiwan Cement Corp posted a record 2Q profit, due mainly to higher cement prices in China, rising sales and increased contribution from its China-based subsidiary, TCC International Holdings Ltd.

The Taipei-based firm's 2Q18 net income, attributable to the parent company, hit TWD7.06bn (US$229.9m), up 228.71 per cent YoY from TWD$2.15bn, the company said in a filing with the Taiwan Stock Exchange.

Consolidated revenue rose 34.83 per cent to TWD33.32bn from TWD24.71bn, while gross margin and operating margin grew to 30.82 per cent and 26.95 per cent, the company said.

Taiwan Cement, which has a substantial share in the Chinese market, reported total net income attributable to the parent company of TWD10.01bn in 1H18, up 235.76 per cent YoY.

The company benefited string cement demand amid Beijing-guided production curbs and disciplined production by its industry peers, analysts said.

Sales this quarter are expected to increase by 35 per cent annually to TWD31.1bn but would be down about 6.6 per cent from last quarter, KGI analyst Angus Chuang said in a research note on Friday. KGI forecast that Taiwan Cements full-year profit this year would grow 198 per cent annually to a record of TWD22.6bn, Chuang said.