STOCK MARKET
Securities firms see losses
Local securities firms reported a combined net loss of NT$1.81 billion (US$58.6 million) last month, down from net income of NT$360.52 million in September as the TAIEX fell about 1,200 points, or 10.94 percent, month-on-month in the wake of a drop on Wall Street, the Taiwan Stock Exchange said yesterday. From January to last month, securities firms reported a cumulative net income of NT$25.7 billion, down 20.57 percent from NT$32.36 billion in the same period last year, it said. The 34 integrated securities firms — which are allowed to engage in brokering, proprietary trading and underwriting — reported a combined net loss of NT$1.99 billion last month, compared with NT$234.73 million in profit in September, while their cumulative net income fell 21.56 percent annually to NT$22.41 billion in the first 10 months, the exchange said.
ELECTRONICS
Sinbon invests in Nextronics
Sinbon Electronics Co (信邦電子), which produces cables, connectors and modems, yesterday said that its board of directors has agreed to acquire 2.95 million common shares of Nextronics Engineering Corp (正淩精密) via a private placement, which it said could create more business opportunities and revenue sources. It offered NT$24.1 per share for Nextronics, which is based in New Taipei City’s Sijhih District (汐止) and makes connectors, valuing the deal at NT$71.095 million, Sinbon said in a filing with the Taiwan Stock Exchange. The firm said that it plans to pay the whole amount by Friday. Shares of Sinbon yesterday closed up 0.76 percent at NT$79.6 before the announcement of the private placement deal, while Nextronics shares were trading at NT$28.75.
ELECTRONICS
Excelliance eyes demand
IC designer Excelliance MOS Co (杰力) yesterday said that it would continue to benefit from robust demand for metal-oxide-semiconductor field-effect transistors (MOSFET) next year, after sales in the first three quarters increased 49 percent annually to NT$1.07 billion. Rising prices and expanded capacity would also boost next year’s sales, it said. From January to September, net income doubled to NT$185 million, with earnings per share of NT$5.24. MOSFETs are used for amplifying or switching electronic signals. Rising demand for device driver components used in smart homes, cordless vacuum cleaners and electrical vehicles means that the supply-demand dynamic for MOSFETs would remain unchanged next year, the company said.
STOCK MARKET
New listings disappoint
Hong Kong’s hottest initial public offerings (IPO) have produced the worst returns for investors this year. Ping An Healthcare and Technology Co (平安健康互聯網), in which retail investors placed orders for 654 times the shares initially available, has tumbled 37 percent since it started trading in May. Biotechnology firm Ascletis Pharma Inc (歌禮製藥), whose retail book was covered 10 times, is down 44 percent from its IPO price, and food delivery giant Meituan Dianping (美團點評) has dropped 24 percent. However, while Redsun Properties Group Ltd (弘陽地產), Zhenro Properties Group Ltd (正榮地產) and DaFa Properties Group Ltd (大發地產) received initial orders filling on average just 0.8 times their retail books, they have climbed an average 18 percent from their IPO prices, putting them among the top five performers for deals of more than US$100 million.
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
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
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’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
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