MoneyDJ reporter Chang Chin-fa, Taipei 2021/04/21 12:57
Global raw material prices are rising, and Nan Chiao (1702 -TW) Chairman Chen Feilong is optimistic about the baking industry. Among these, the demand for baking oils and frozen dough is expected to continue to grow. Nan Chiao is strengthening its local characteristics to increase product added value and seeking recognition from the baking and catering industries.
Chen Feilong pointed out that it's still uncertain what will happen in April. Nanchiao is also prepared to respond to the new challenges after the pandemic has passed and operations return to their original state. With the expansion and mass production at Nanchiao's Thai plant, the company's operations this year will be better than in 2020, with a chance to reach a new high and surpass 20 billion.
Nang Kwang did not participate in the large-scale baking exhibition at the end of March this year. However, from today until the 23rd, they are holding a baking "Summer Special Exhibition." The exhibition focuses on new applications for oils and fats and frozen dough, as well as the "baking and catering integration" theme. They have invited baking and catering professionals to visit, and 580 industry professionals have registered, including 200 catering professionals.
"Namchow Chairman Chen Fei-lung pointed out that while many catering operators focus on rising labor and ingredient costs, the convenience and innovation of baked goods production, applied to the growing demand for breakfast and beverage options in business travel, are also continuously increasing."
Nan Chiao posted strong operating results in the first quarter of this year, with a record monthly net profit after tax of NT$162 million in March—a 12-fold increase from the previous month and a 1.9-fold increase year-over-year.Earnings per share (EPS) stood at NT$0.65, driving first-quarter net profit to NT$279 million—a 10.29% decrease from the previous quarter but a 2.68-fold increase year-over-year, with EPS at NT$1.12.This also set a new high for the same period since 2017, with operations returning to a growth trajectory.
Nanqiao reported revenue of NT$17.622 billion in 2020, with sales of edible oils across the Taiwan Strait accounting for 58.1% of total revenue. Chen Feilong noted that major retailers such as PX Mart and FamilyMart have significantly increased their investment in branded products, driving up the value of the baking sector.and Nanqiao is also quite optimistic about the market.
Nanqiao reported a net profit after tax of NT$950 million in 2020, down 1.31% year-on-year. Earnings per share (EPS) stood at NT$3.84, and the company plans to pay a cash dividend of NT$2 per share, maintaining the previous year’s level.
