Nanya Technology Corp (南亞科技) yesterday saw its shares tumble 8.23 percent after the DRAM chipmaker cut its shipment forecast for this quarter, as US-China trade tensions and supply constraints on microprocessors from Intel Corp took their toll.
The memory chipmaker said shipments would decline by about 15 percent this quarter, as higher US tariffs on Chinese goods curtailed end demand and caused production line issues in the supply chain.
In October, the company forecast a flat quarter this quarter in terms of shipments.
For the full year, shipments are expected grow at a slower pace of 40 percent year-on-year, compared with the firm’s original estimate of 48 percent, Nanya Technology said in a statement.
Nanya Technology posted revenue of NT$5.4 billion (US$175.29 million) for last month, a 19.67 percent decline from October’s NT$6.73 billion.
Due to flagging demand, shipments dropped by about 15 percent, while the chipmaker’s average selling price dipped 1 to 3 percent from October, the firm said.
Revenue shrank 5.95 percent year-on-year from NT$5.74 billion.
In the first 11 months, revenue surged 63.16 percent year-on-year to NT$48.97 billion from NT$30.93 billion, as the DRAM sector’s nine-quarter boom only began to reverse this quarter.
Nanya Technology shares dropped to NT$56.9 yesterday, compared with the TAIEX’s loss of 1.65 percent.
Jih Sun Securities Investment Consulting Co (日盛投顧) said Nanya Technology has achieved 47 percent of its revenue forecast of NT$25.8 billion for this quarter.
“The fourth quarter is usually a peak season, but it appears to be a different story this year,” Jih Sun said yesterday in a research note.
The investment consultant retained its “neutral” rating on Nanya Technology, as the company is vulnerable to fluctuations in memorychip prices, which are likely to continue to be weak, it said.
However, Maybank said it holds a relatively positive outlook regarding Nanya Technology.
“We are positive about the DRAM industry, because suppliers have been disciplined with regards to capital expenditure and we believe Nanya Technology’s share buyback plan should provide near-term share price support,” Maybank said yesterday in a report.
Maybank kept its target share price for Nanya Technology unchanged at NT$100, but investors should be mindful of the near-term downside risk to sales and earnings, it said.
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