Advanced Optoelectronic Technology Inc (榮創能源科技) shares soared yesterday on its debut on the Taiwan Stock Exchange, with analysts saying the company will see its bottom line further strengthened on the back of orders placed by its major shareholders.
In addition, as the company is now producing LED products for automotive use to diversify its product portfolio and benefit from rising demand for LED backlights, analysts say the company will have a better second half of this year compared with the first.
Advanced Optoelectronic shares rose 26.53 percent from the issue price of NT$72 to close at NT$91.1, with 14.39 million shares changing hands. The benchmark TAIEX closed down 0.43 percent at 9,489.98.
The LED chip packager is about 30 percent owned by Hon Hai Group (鴻海集團) and 10 percent by Japan-based LED giant Nichia Corp.
For the listing, Advanced Optoelectronic issued 15.34 million new shares to raise about NT$1.1 billion (US$36.7 million) in funds.
In its prospectus, the company said its debt-to-asset ratio could fall to 39.03 percent this quarter after the listing, compared with 48.79 percent in the fourth quarter of last year.
Last year, the company posted NT$687 million in net profit, or earnings per share of NT$5.29, compared with NT$451 million in net profit, or earnings per share of NT$3.47 in 2012.
In the first quarter of this year, its earnings per share stood at NT$1.09, the highest quarterly level in the company’s history.
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