EQUITIES
US rally boosts TAIEX
The TAIEX yesterday rose by more than 100 points with investors encouraged by a rally on US markets on Friday last week due to better-than-expected jobs data. Buying focused on the high-tech sector amid optimism over an increase in shipments of consumer electronic devices at a time of economic reopening on easing concerns over COVID-19, while petrochemical stocks received a boost from oil producers’ decision to extend their output cut deal, dealers said. The TAIEX ended up 130.92 points, or 1.14 percent, at 11,610.32, on turnover of NT$202.508 billion (US$6.79 billion). Foreign institutional investors bought a net NT$9.54 billion worth of shares on the main board, Taiwan Stock Exchange data showed.
CONTACT LENSES
Largan inks Watsons deal
Largan Medical Co Ltd (星歐光學), a contact lens subsidiary of handset camera lens manufacturer Largan Precision Co (大立光), yesterday said that it would manufacture contact lenses for health and beauty care chain Watsons Personal Care Stores (Taiwan) Co (台灣屈臣氏) on a contract basis. The Taichung-based company said the nation’s largest cosmetics and drugstore chain would sell its products under the “Pink by Pure Beauty” brand at 400 outlets. Largan Medical, founded in 2004, also sells its own-brand lenses at several retail channels and online platforms.
FOOD AND BEVERAGE
The Bread chain to close
The Bread (布列德麵包) bakery chain, owned by Ting Hsin International Group (頂新集團), yesterday announced that it would cease operations on June 30, citing the effects of the COVID-19 pandemic. Wei Chuan Foods Corp (味全食品) established the chain in May 2007 and sold it to Ting Hsin in 2013. The Bread, with nine stores in the greater Taipei region, said that due to the pandemic and operational adjustments, it would close its entire retail channel and hopes to re-enter the market with multifaceted features, without elaborating.
COSMETICS
Thai Ho revenue rises
Cosmetics maker Thai Ho Group Inc (太和生技集團) yesterday reported that revenue last month improved from the previous month due to strong demand from Chinese brands, but remained lower than a year earlier because of a high comparison base. Consolidated revenue grew 14 percent month-on-month, but declined 24.93 percent year-on-year to NT$79.99 million. Because of the COVID-19 pandemic, Thai Ho said that cumulative revenue in the first five months fell 14.09 percent annually to NT$282.75 million. The company said it remains optimistic about this year, citing new orders for winter from some European and US cosmetics brands, as well as demand for gift sets for the Christmas holiday.
MANUFACTURING
Global PMX orders return
Global PMX Co (智伸科), which makes auto parts and medical components, yesterday said that it expects major clients to gradually increase orders back to previous levels this quarter as the COVID-19 situation stabilizes and markets start to reopen. Global PMX said it predicts that overall operations would pick up quarter by quarter this year, as it aims to work closely with clients, coordinate follow-up shipping schedules and manage orders in hand to maintain good visibility. The company reported that revenue last month declined 32.25 percent year-on-year to NT$435.998 million, while cumulative revenue in the first five months decreased 19.9 percent to NT$2.48 billion.
Japanese technology giant Softbank Group Corp said Tuesday it has sold its stake in Nvidia Corp, raising US$5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this fiscal year from a year earlier. Tokyo-based Softbank said it sold the stake in Silicon Vally-based Nvidia last month, a move that reflects its shift in focus to OpenAI, owner of the artificial intelligence (AI) chatbot ChatGPT. Softbank reported its profit in the April-to-September period soared to about 2.5 trillion yen (about US$13 billion). Its sales for the six month period rose 7.7 percent year-on-year
CRESTING WAVE: Companies are still buying in, but the shivers in the market could be the first signs that the AI wave has peaked and the collapse is upon the world Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported a new monthly record of NT$367.47 billion (US$11.85 billion) in consolidated sales for last month thanks to global demand for artificial intelligence (AI) applications. Last month’s figure represented 16.9 percent annual growth, the slowest pace since February last year. On a monthly basis, sales rose 11 percent. Cumulative sales in the first 10 months of the year grew 33.8 percent year-on-year to NT$3.13 trillion, a record for the same period in the company’s history. However, the slowing growth in monthly sales last month highlights uncertainty over the sustainability of the AI boom even as
AI BOOST: Next year, the cloud and networking product business is expected to remain a key revenue pillar for the company, Hon Hai chairman Young Liu said Manufacturing giant Hon Hai Precision Industry Co (鴻海精密) yesterday posted its best third-quarter profit in the company’s history, backed by strong demand for artificial intelligence (AI) servers. Net profit expanded 17 percent annually to NT$57.67 billion (US$1.86 billion) from NT$44.36 billion, the company said. On a quarterly basis, net profit soared 30 percent from NT$44.36 billion, it said. Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said earnings per share expanded to NT$4.15 from NT$3.55 a year earlier and NT$3.19 in the second quarter. Gross margin improved to 6.35 percent,
BUST FEARS: While a KMT legislator asked if an AI bubble could affect Taiwan, the DGBAS minister said the sector appears on track to continue growing The local property market has cooled down moderately following a series of credit control measures designed to contain speculation, the central bank said yesterday, while remaining tight-lipped about potential rule relaxations. Lawmakers in a meeting of the legislature’s Finance Committee voiced concerns to central bank officials that the credit control measures have adversely affected the government’s tax income and small and medium-sized property developers, with limited positive effects. Housing prices have been climbing since 2016, even when the central bank imposed its first set of control measures in 2020, Chinese Nationalist Party (KMT) Legislator Lo Ting-wei (羅廷瑋) said. “Since the second half of
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