Dealers look to global markets
The TAIEX closed little changed yesterday as worries remained over further volatility in global financial markets, in particular Wall Street, which suffered a pullback overnight, dealers said.
While selling focused on select old economy stocks on profit-taking after recent strong showings, certain electronics shares, including flat-panel firms, attracted buying to lend some support to the broader market, they said.
The weighted index ended up 4.73 points, or 0.06 percent, at the day’s high of 7,434.93, on turnover of NT$69.06 billion (US$2.37 billion).
Stock exchange limits meetings
In order to allow shareholders to attend annual shareholders’ meetings more conveniently, the Taiwan Stock Exchange said it would allow no more than 120 listed companies to hold the meetings on a single day.
The limitation, which will be effective from next year, will also be applicable to listed companies which have paid-up capital of more than NT$10 billion and more than 10,000 investors using imperative electronic voting.
The limitation will not apply to companies that voluntarily adopt electronic voting.
Manufacturing sales fall again
Sales generated by the manufacturing sector in the third quarter of this year fell more than 3 percent from a year earlier amid a slowdown in the economic fundamentals at home and abroad, the Ministry of Economic Affairs said on Tuesday.
The sector posted third-quarter revenue of NT$3.24 trillion, down 3.43 percent year-on-year, according to data released by the ministry.
However, the figure was 0.11 percent higher than in the second quarter, when sales in the domestic manufacturing sector fell 5 percent from a year earlier.
Hon Hai enters China TV market
Hon Hai Precision Industry Co (鴻海) is working with two of China’s top television brands — Skyworth (創惟) and Haier (海爾) — to sell its 60-inch LED TVs in China, market sources said yesterday.
The sources said the large-sized LED TVs, which use flat panels made by Sharp’s 10th-generation panel plant in western Japan, have gone on sale under the Skyworth and Haier brands in China.
Hon Hai chairman Terry Gou (郭台銘) owns a 46.5 percent stake in Sharp’s flat-screen plant.
Through the partnership with Chinese brands, Hon Hai is expected to ship 10,000 to 20,000 of the big-screen TVs a month to China by the end of this year, the sources said.
Hon Hai declined to comment on the news.
Asustek positive over Padfone
Asustek Computer Inc (華碩) expects to sell 150,000 units of its second-generation Padfone in Taiwan by the second quarter of next year, which would make it the company’s best-selling smartphone in its home market.
Asustek’s corporate vice president Benson Lin (林宗樑) told a media briefing yesterday that demand in Taiwan for the Padfone 2 had exceeded expectations since it was launched on Oct. 16. More than 25,000 of the large-screen smartphones have been sold since then in the country, Lin said.
The hybrid device has already hit stores in Taiwan, Italy, Russia, Japan and Hong Kong, and will go on sale in more than 20 countries by the end of the current quarter, said Lin, who declined to disclose global sales numbers.
NT$ down against greenback
The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.046 to close at NT$29.175.
Turnover totaled about US$732 million during the trading session.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a