Yageo will lower its capital by 20%
Taipei, March 19 (CNA) Yageo Corp., the world’s third-largest multilayer ceramic capacitor (MLCC) supplier, has decided to cut its paid-up capital by 20% as part of the capital restructuring.
At a board meeting held on Thursday, Yageo proposed the capital reduction to reduce the size of its capital from NT$1.08 billion (US$38.16 million) to NT$4.32 billion. NT dollars, joining a growing list of leading companies that have sought to reduce capital and increase earnings per share. .
The passive electronic component maker said it would return NT$2 in cash for each share held by shareholders to complete the capital reduction.
Earlier this week, Evergreen Marine Corp., the largest containerized cargo shipper in Taiwan, proposed to cut its paid-up capital by 60% from the current NT$52.91 billion to around NT$21.16 billion. .
In addition, Yageo has also proposed to issue a cash dividend of NT$10 for each share held by shareholders based on earnings per share of NT$46.46 in 2021.
In addition to the cash payment of NT$2 per share resulting from the capital reduction, shareholders will receive a total of NT$12 per share if the dividend distribution and capital reduction proposals are approved at the general meeting. company’s annual meeting scheduled for June 8.
This will be the fifth capital reduction undertaken by Yageo since 2013. Since 2017, Yageo’s paid-in capital has been reduced by four capital reductions, from NT$22.1 billion in 2013 to NT$3.5 billion. NT dollars.
After 2017, Yageo saw its capital size increase to current NT$5.4 billion through acquisitions and mergers. Among the mergers and acquisitions agreements, the supplier MLCC acquired the American company Pulse Electronics Corp. in 2018 for NT$22 billion before acquiring fellow US rival Kemet Corp. for US$1.64 billion in 2020.
Market analysts said the capital reduction is expected to boost Yageo’s EPS to challenge NT$60 in 2023.
In 2021, Yageo achieved a net profit of NT$22.90 billion, up 90.7% from the previous year, while its consolidated sales hit a new high of $106.54 billion NT, up 57.4% over the previous year.
Yageo’s gross margin – the difference between revenue and cost of goods sold – improved 2.8 percentage points from a year earlier to 40.4% in 2021.
In the fourth quarter of last year, the company posted a net profit of NT$4.74 billion, down 30.7% from the previous quarter but up 27.9% from last year. year on consolidated sales of NT$25.69 billion, down 12.6% from the previous quarter but up 15.6% from the previous year.
Yageo said it expects sales in the first quarter of this year to increase 11 to 14 percent from the previous quarter thanks to increased shipments of high-end passive electronic components.
The company said its business could suffer some impact from the military conflict between Russia and Ukraine, but stressed that it does not import any raw materials from the two countries, adding that its gross margin should remain at around 40 % This year.