Textile manufacturer Far Eastern New Century Corp (遠東新世紀), which is a flagship company of the diversified business conglomerate, advanced 2.67 percent to NT$34.55 yesterday. Shares have fallen 1.71 percent so far this year.
Fubon Securities Investment Services Co (富邦投顧) analyst Kerry Wu (吳致勤) said the government’s tighter housing restrictions and a purified terephthalic acid (PTA) supply glut will continue to undermine Far Eastern New Century’s operations next year.
In addition, non-core gains from Sogo only make up a 2 percent of the textile firm’s net asset value, representing a meager contribution to consolidated sales, he added.
Additional reporting by Helen Ku