FINANCE
FSC cuts short sale ratio
The Financial Supervisory Commission (FSC) yesterday announced that beginning on Tuesday, the minimum margin maintenance ratio for short sales will be lowered to 90 percent. The commission raised the ratio to 120 percent on Jan. 8 as precipitous tumbles in the Chinese equity markets rocked the local bourse. Regarding its latest move, the commission yesterday said intervention measures should not be prolonged as markets at home and abroad have since began to stabilize.
STOCK MARKET
Morgan Stanley raises rating
Morgan Stanley has decided to upgrade its rating on Taiwan to “buy” and raise its TAIEX target to 9,000 points from 8,800 under its latest reshuffle of its emerging markets portfolio. In a report released yesterday, Morgan Stanley said it turned positive toward the Taiwanese market, because the local market has increased its return on equity since 2011, even though its price-to-book ratio has fallen during the period. The bank also recommended that investors load up on 16 Taiwanese stocks, inclucding Taiwan Semiconductor Manufacturing Co (台積電), Largan Precision Co (大立光), Catcher Technology Co (可成) and Chunghwa Telecom Co (中華電信).
TELECOMS
Senao Networks earns more
Senao Networks Inc (神準), which develops integrated connectivity products, data networking and wireless voice communications products, reported that its net income increased 32.72 percent year-on-year to NT$811.96 million (US$24.99 million) last year, with record-high earnings per share of NT$16.6 and annual sales of NT$7.58 billion. With positive order outlook, Yuanta Securities Investment Consulting Co (元大投顧) said its sales growth will be sequential this year.
SOLAR CELLS
Gintech secures loan
Solar cell maker Gintech Energy Corp (昱晶) yesterday said it has secured a three-year NT$4.2 billion syndicated loan from 13 domestic banks, led by state-run First Commercial Bank (第一銀行). The company said it plans to use the funds to buy raw materials overseas and to repay bank loans. The loan includes a provision for a two-year extension upon the agreement of all parties.
PHARMACEUTICALS
OBI shares rise 3.46%
Drug maker OBI Pharma Inc (台灣浩鼎) yesterday saw shares rise 3.46 percent to close at NT$463, ending a run of four consecutive declines on the over-the-counter bourse. Investors had been offloading shares in OBI Pharma after it on Sunday released discouraging results on the second and third-phase clinical trials of a new breast cancer drug, OBI-822. The firm this week decided to spend up to NT$2.799 billion on a program to repurchase 3 million shares.
COMPUTERS
Non-PC drives supply chain
With PC demand remaining weak, the non-PC business will likely be a more important catalyst for the PC supply chain in Asia, Daiwa Capital Markets Inc said in a client note on Thursday. Among contract PC makers, Pegatron Corp (和碩) remains Daiwa’s top pick, given its favorable exposure in iPhone assembly and improving operating leverage, according to the note. Quanta Computer Inc (廣達) also appears attractive because of its leading position in cloud server business, Daiwa said. Foreign exchange rates will remain a concern for Lenovo Group Ltd (聯想), Acer Inc (宏碁) and Asustek Computer Inc (華碩) in the coming months, it said.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
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