Alexa
  • Directory of Taiwan

Siliconware shares resilient on 2014 results, rosy outlook

Siliconware shares resilient on 2014 results, rosy outlook

Taipei, Jan. 29 (CNA) Shares of Siliconware Precision Industries Co. (??), one of Taiwan's leading integrated circuit packaging and testing services providers, appeared resilient against the weakness of the broader market after the company reported a better bottom line for 2014, dealers said. The relatively stable stock also reflected a rally of its American depositary receipts (ADRs) on Wall Street overnight and optimism toward Siliconware's earnings outlook as investors took cues from the company's upbeat forecast for 2015, the dealers said. As of 11:03 a.m., shares of Siliconware had fallen 0.19 percent to NT$52.40 (US$1.67), off an early high of NT$53.80, with 11.83 million shares changing hands. The weighted index on the Taiwan Stock Exchange was down 0.96 percent at 9,419.21 points, while the bellwether electronics sub-index was down 1.22 percent at 378.84 points. "The stock outperformed the broader market, which went down after losses on Wall Street overnight. Investors seemed willing to hold Siliconware shares in the wake of its 2014 earnings," KGI Securities analyst Phil Chu said. In an investor conference, Siliconware reported that its net profit for 2014 rose 99.1 percent from a year earlier to NT$11.73 billion, with earnings per share (EPS) at NT$3.74. The 2014 net profit and EPS both hit new seven-year highs. In the fourth quarter of last year, Siliconware's net profit fell 7.5 percent from a quarter earlier to NT$3.01 billion, with its EPS at NT$0.97, in reflection of the slow-season effect, while its gross margin for the October-December period rose 1.3 percentage points from a year earlier to 26.9 percent. "In recent sessions, foreign institutional investors had geared up to buy into the stock not only on expectations of the strong 2014 results but also on optimism toward the company's earnings outlook," Chu said. According to Chu, foreign institutional investors bought more than 23 million Siliconware shares on the main board. He said that a 5.63 percent rally of Siliconware's ADRs overnight also resulted from foreign institutional interest in the stock. "Bough Lin (???), chairman of Siliconware, uttered an upbeat forecast for 2015, which helped the stock fend off downward pressure on the broader market today," Chu said. Lin said during the investor conference that due to the continued slow- season effect, Siliconware's sales for the first quarter of this year could fall between 1 percent and 6.6 percent from the previous quarter. Chu said that the forecast beat market expectations of a double-digit sequential decline. Lin said that after the first quarter, Siliconware is expected to see its sales pick up for the rest of the year, adding that the company has set a goal to outpace sales growth of the entire IC packaging and testing business, which could post sales growth of 7 percent-8 percent in 2015. "Although Siliconware shares are resilient for the moment, investors should keep alert over volatility on Wall Street, which could affect the Taipei market and individual stocks. Siliconware could face stiff technical resistance at around NT$55.80 in the near term," Chu said. (By Jalen Chung and Frances Huang)


Updated : 2021-09-28 07:43 GMT+08:00