Shares of Zhen Ding Technology Holding Ltd (臻鼎), which makes printed circuit boards for Apple Inc’s iPhones, yesterday tumbled 9.96 percent in Taipei, even though its Chinese subsidiary, Avary Holding (Shenzhen) Co Ltd (鵬鼎控股深圳), made a strong debut in Shenzhen.
Avary Holding’s A-shares skyrocketed 44 percent to close at 23.14 yuan on the Shenzhen Stock Exchange, compared with its listing price of 16.07 yuan per share.
Trading of Avary Holding shares stopped for an hour after a 22 percent rally triggered a circuit breaker at 9:30am.
Zhen Ding holds an 80.91 percent stake in Avary Holding.
However, Zhen Ding shares nosedived to NT$69.6 on the Taiwan Stock Exchange, despite a strong growth outlook for the fourth quarter as the electronics industry enters its peak season.
From 2012 to last year, Zhen Ding’s revenue soared 44 percent quarterly in the October-to-December quarter on average, company filings with the Taiwan Stock Exchange showed.
Chinese-language online news outlet Cnyes.com yesterday said a US-based securities brokerage had downgraded Zhen Ding from “buy” to “neutral,” saying that the improvement in the company’s gross margin was reflected in its recent rally.
The brokerage predicted that Zhen Ding would make NT$5.8 billion (US$188.23 million) in net profit this year, or earnings per share of NT$6.71.
Zhen Ding shares on Monday jumped 15.6 percent to NT$77.1 from NT$66.7 on June 29.
The company’s net profit surged 2.85 times to NT$750 million in the quarter ending on June 30, compared with NT$195 million in the same period last year, while earnings per share surged to NT$0.89 from NT$0.24, company data showed.
Gross margin last quarter climbed to 17.46 percent from 13.1 percent in the same period last year, the company said.
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