EQUITIES
Tech stocks curb TAIEX gains
The TAIEX closed higher yesterday, but gains were limited as some tech stocks, in particular in the semiconductor industry, fell toward the end of the day amid lingering worries on the US markets over an increase in interest rates. Offsetting the impact from the tech sector, the transportation sector continued its momentum from the previous session, while financial stocks kept steaming ahead on hopes that higher interest rates would boost financial firms’ returns from overseas investments. The TAIEX rose by 66.26 points, or 0.37 percent, to close at 17,966.56, after coming off a high of 18,063.55. Turnover totaled NT$313.218 billion (US$11.25 billion), with foreign institutional investors selling a net NT$2.49 billion of shares on the main board after selling a net NT$6.45 billion on Monday, Taiwan Stock Exchange data showed.
PHARMACEUTICALS
Medigen files application
Medigen Vaccine Biologics Corp (高端疫苗) has filed a new drug application for its quadrivalent influenza vaccine with the Food and Drug Administration, hoping to join three other suppliers in providing publicly funded influenza vaccines, the company said in a filing with the Taiwan Stock Exchange yesterday. Medigen said it is working with South Korea’s biggest flu vaccine maker, GC Pharma Corp. GC Pharma is responsible for making the vaccine bulk, while Medigen focuses on fill-and-finish, sub-packaging and quality control, as well as applying for drug certificates under its brand, the local firm said. The new vaccine aims to prevent influenza-related diseases caused by two types of influenza A and two types of influenza B viruses, Medigen added. In Taiwan, the government purchases about 6.3 million doses of quadrivalent influenza vaccine each year with a budget of about NT$1.5 billion.
ELECTRONICS
E-Lead net income spikes
E-Lead Electronic Co (怡利電子), an auto electronics manufacturer focusing on infotainment head units, yesterday reported that its net income surged 780 percent annually to NT$88 million in the fourth quarter of last year, with earnings per share (EPS) rising to NT$0.74, the highest since the second quarter of 2015. Revenue increased 55.45 percent annually to NT$855 million in the quarter, the company said. E-Lead said its strong fourth-quarter performance helped lift its net income for the entire year to NT$97 million, compared with a net loss of NT$81.92 million in 2020, with EPS reaching NT$0.81 — the highest in six years. Revenue for the year rose 51.57 percent annually to NT$1.63 billion, it said. The company also supplies navigation systems, vehicle sensors and other automotive accessories at its bases of operation in Taiwan, China and Thailand.
APPAREL
Makalot revenue up 20%
Makalot Industrial Co (聚陽), a manufacturer of ready-to-wear apparel and functional clothing, yesterday reported consolidated revenue of NT$2.86 billion for last month, up 20 percent from a year earlier and a new company record for January thanks to rising orders from brand clients. However, last month’s figure was 10.07 percent lower than in December due to the Lunar New Year holiday, it said. Looking ahead, end-market demand in Europe and the US remains healthy and orders from brand and channel clients are expected to increase further, Makalot said. The company’s order visibility has extended to June this year, although port congestion worldwide is still a potential risk, it said.
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said
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