Brokers downbeat on TPK
Several foreign brokerages have lowered their target prices on TPK Holding Co (宸鴻) after the touch panel maker reported its first quarterly net loss since joining the main board in October 2010. The brokerages have turned bearish about TPK’s earnings prospects amid concerns over intensifying price competition, which could further squeeze the company’s bottom line.
Bank of America Merrill Lynch said an escalating price downtrend in the industry is expected to continue to cut TPK’s profit margin and the touch panel maker will not see an improvement in operations until the annual peak season in the third quarter. Merrill Lynch cut its target price on TPK shares to NT$150 from NT$230, but maintained its "underperform" rating on the stock. The brokerage also reduced its forecasts for TPK’s earnings per share in this year and next year by 34 percent to NT$16.77 and NT$20.84, respectively. Daiwa Securities cut its forecast for TPK’s EPS for year and next year by 10 percent and 11 percent respectively, to NT$10.8 and NT$12.1. It maintained its target price of NT$140 and a "sell" recommendation on TPK shares. On Friday, TPK closed down 1.10 percent in Taipei trading at NT$180.
BenQ launches LED TVs
Taiwanese high-tech device supplier BenQ Corp (明基) has launched two large, full high-definition LED TVs to improve its product portfolio. Using AU Optronics Corp’s (友達光電) extremely narrow frame technology, BenQ said it aims to provide visually appealing products. The bezels of the 50-inch and 65-inch models are only 0.3cm and 1cm respectively, the smallest made in Taiwan, the company said. The models are the latest in BenQ’s RW series.