Shares of Yulon Nissan Motor Co (裕隆日產) got a boost to end at a new high yesterday on hopes that its Chinese investments would strengthen profitability, dealers said.
The hopes come from strong sales at China-based Dongfeng Nissan Passenger Vehicle Co (東風日產), as Yulon Nissan’s five subsidiaries in China serve as component suppliers to the firm, they said.
Shares of Yulon Nissan rose 2.41 percent to close at NT$382, with 339,000 shares changing hands on the Taiwan Stock Exchange.
Led by the gains posted by Yulon Nissan, the auto sub-index on the main board closed up 1.91 percent at 331.21 points, while the weighted index finished up 0.79 percent, at 8,441.19 points.
Buying in Yulon Nissan shares was sparked by figures compiled by the China Association of Automobile Manufacturers that showed Dongfeng Nissan sold about 623,600 cars in China in the first nine months of this year, market analysts said. They said it could end up with more than a 17 percent share of the Chinese auto market.
Analysts said optimism about Dongfeng Nissan’s sales prompted investors in Taiwan to pick up Yulon Nissan shares.
Investors were already chasing the company’s stock in recent sessions on expectations that Yulon Nissan would report more than NT$6 in earnings per share (EPS) for the third quarter, up from the NT$5.93 EPS of the second quarter, on the launch of new models, analysts said.
Since the beginning of last month, the stock has added more than 25 percent on strong foreign institutional interest.