Sale of Micron shares to buoy Nanya profitability in 2Q17
Jessie Shen, DIGITIMES, Taipei [Tuesday 4 July 2017]
Nanya Technology's sale of Micron Technology shares since mid-June is expected to buoy the Taiwan-based DRAM makers' profitability for the second quarter of 2017, which has been already driven by rising DRAM prices.
Nanya has sold a total of about 12 million Micron shares for US$30-32 each from June 16 to June 29, and expects to recognize a total gain of nearly US$167 million from the sale, according to company filings with the Taiwan Stock Exchange (TSE).
Nanya disclosed on June 29 it sold 400,000 Micron shares for about US$32.16 each or a total of US$12.862 million. Nanya expects to recognize a gain of approximately US$5.94 million from the sale. In a filing on June 27, Nanya said it sold 1,002,068 Micron shares for about US$32.61 each or a total of US$32.677 million. Nanya expects to recognize a gain of approximately US$15.33 million from the sale.
Nanya disclosed on June 24 it sold 597,932 Micron shares for about US$32.07 each or a total of US$19.173 million. In a filing on June 22, Nanya said it sold 1.75 million Micron shares for about US$31.65 each or a total of US$55.382 million. Also in a filing on June 21, Nanya disclosed it sold one million Micron shares for about US$31.2 each or a total of about NT$31.2 million. The company expects to recognize a total of NT$47.78 million in gain from the sale.
Nanya sold a total of about 7.26 million Micron shares for US$223.629 million from June 16 to June 20. The company expects to recognize US$97.85 million in gain from the sale.
Nanya's stake in Micron has reduced to 4.14%. Nanya said previously the sale will have no impact on the existing partnership between the two companies. Nanya still holds 45,766,058 Micron shares.
Market watchers expect Nanya to earn over NT$9 billion (US$295 million) during the second quarter of 2017 with EPS ranging from NT$3.30 to NT$3.50.
Nanya reported consolidated revenues increased 1.1% sequentially to NT$12.23 billion in the first quarter of 2017. During the quarter, the company's DRAM ASPs rose 20.1% on quarter while bit shipments fell 14.4%. Nanya posted a 40.1% gross margin in the first quarter of 2017, up 9.1pp sequentially, while operating margin surged 10.3pp on quarter to 31.5%.
Nanya generated net profits of NT$3.28 billion in the first quarter of 2017, down 83.7% on quarter but up 77.1% on year. EPS for the quarter came to NT$1.19. The company had foreign exchange transaction losses of NT$575 million in the quarter.
Nanya's cumulative 2017 revenues through May came to NT$20.66 billion, rising 27% from a year earlier.
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