STOCK EXCHANGE
THSRC to go under review
Taiwan Stock Exchange Corp (TWSE, 臺灣證券交易所) is to review a listing plan submitted by Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) today, the stock exchange operator said in a statement released yesterday. THSRC, which plans to shift to the main bourse from the Emerging Stock Market by the end of this year, has capital of NT$56.05 billion (US$1.75 billion). The high-speed rail operator reported a net profit of NT$20.82 billion last year, with earnings per share of NT$7.19. Last year’s revenue was NT$51.9 billion, up from NT$38.5 billion the previous year, company data showed.
STOCK EXCHANGE
TSMC’s value at record high
Shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) jumped 1.18 percent yesterday to NT$172, boosting the company’s market value to a record NT$4.46 trillion, according to Taiwan Stock Exchange Corp. Led by the rise in TSMC shares, the TAIEX closed up 0.54 percent at a year-high 9,056.56 points. Meanwhile, TSMC yesterday distributed NT$155.58 billion in cash dividends to its shareholders. Foreign investors, who held a combined 79.17 percent stake in TSMC, received more than NT$120 billion in dividends.
ELECTRONICS
Cando to file for bankruptcy
Touch panel maker Cando Corp’s (達鴻) board of directors yesterday decided to file for bankruptcy at the Taichung District Court to protect shareholders’ and creditors’ interests, the company said in a filing with the Taiwan Stock Exchange. The company booked NT$9.39 billion in liabilities, exceeding its total assets of NT$7.13 billion, the filing said. Cando shut down its factories and laid off most of its employees in January. TPK Holding Co (宸鴻), which wrote down Cando-related asset impairments last year, said the insolvency of its subsidiary would not have negative effects on its financial performance this year.
AUTO PARTS
Tong Yang shares up 5.87%
Auto parts maker Tong Yang Industry Co (東陽實業) yesterday saw its shares soar 5.87 percent to NT$54.1 after Daiwa Capital Markets suggested investors accumulate the stock this quarter. On Wednesday, Tong Yang reported its gross margin expanded to 25.2 percent in the first half of the year from 22.7 percent the previous year, and Daiwa said in a client note that gross margin would expand further in the second half due to higher mold income for its original equipment manufacturing business and lower depreciation expense for its sheet-metal manufacturing in its aftermarket business. Daiwa maintained a “buy” rating on Tong Yang and raised its 12-month price target from NT$57 to NT$66.
STEEL
Global production declines
Global crude steel production fell by 1.9 percent in the first half of this year compared with the same period a year ago, led by slumps in Europe and Latin America, the World Steel Association (WSA) said on Wednesday. Overall production dipped to 794.8 million tonnes, the group said, pointing to a 6.1 percent slide among EU-based producers and a 13.8 percent slump in South America. North America limited its decline to 0.6 percent, while Asia was off 1.0 percent. Last month, overall production was stable at 136 million tonnes, the WSA said. China, the world’s No. 1 steel producer and top consumer, churned out 69.5 million tonnes for a 1.7 percent rise year-on-year, it said.
EXTRATERRITORIAL REACH: China extended its legal jurisdiction to ban some dual-use goods of Chinese origin from being sold to the US, even by third countries Beijing has set out to extend its domestic laws across international borders with a ban on selling some goods to the US that applies to companies both inside and outside China. The new export control rules are China’s first attempt to replicate the extraterritorial reach of US and European sanctions by covering Chinese products or goods with Chinese parts in them. In an announcement this week, China declared it is banning the sale of dual-use items to the US military and also the export to the US of materials such as gallium and germanium. Companies and people overseas would be subject to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) founder Morris Chang (張忠謀) yesterday said that Intel Corp would find itself in the same predicament as it did four years ago if its board does not come up with a core business strategy. Chang made the remarks in response to reporters’ questions about the ailing US chipmaker, once an archrival of TSMC, during a news conference in Taipei for the launch of the second volume of his autobiography. Intel unexpectedly announced the immediate retirement of former chief executive officer Pat Gelsinger last week, ending his nearly four-year tenure and ending his attempts to revive the
WORLD DOMINATION: TSMC’s lead over second-placed Samsung has grown as the latter faces increased Chinese competition and the end of clients’ product life cycles Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the No. 1 title in the global pure-play wafer foundry business in the third quarter of this year, seeing its market share growing to 64.9 percent to leave South Korea’s Samsung Electronics Co, the No. 2 supplier, further behind, Taipei-based TrendForce Corp (集邦科技) said in a report. TSMC posted US$23.53 billion in sales in the July-September period, up 13.0 percent from a quarter earlier, which boosted its market share to 64.9 percent, up from 62.3 percent in the second quarter, the report issued on Monday last week showed. TSMC benefited from the debut of flagship
TENSE TIMES: Formosa Plastics sees uncertainty surrounding the incoming Trump administration in the US, geopolitical tensions and China’s faltering economy Formosa Plastics Group (台塑集團), Taiwan’s largest industrial conglomerate, yesterday posted overall revenue of NT$118.61 billion (US$3.66 billion) for last month, marking a 7.2 percent rise from October, but a 2.5 percent fall from one year earlier. The group has mixed views about its business outlook for the current quarter and beyond, as uncertainty builds over the US power transition and geopolitical tensions. Formosa Plastics Corp (台灣塑膠), a vertically integrated supplier of plastic resins and petrochemicals, reported a monthly uptick of 15.3 percent in its revenue to NT$18.15 billion, as Typhoon Kong-rey postponed partial shipments slated for October and last month, it said. The
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