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Neo Solar shares jump on Q3 hopes

Neo Solar shares jump on Q3 hopes

Taipei, June 18 (CNA) Shares of Neo Solar Power Corp. (???) moved sharply higher Thursday morning after the solar cell manufacturer said a day earlier that it is expected to have a better third quarter on the back of rising demand and product prices, dealers said. The stock also witnessed strong buying emerge soon after the local bourse opened as investors took cues of the company's plan that a subsidiary will launch a listing on the Hong Kong stock exchange, the dealers said. Buying spread to other solar energy stocks in the local equity market due to their relatively small market capitalization at a time when large-cap stocks here remained slow, which prompted investors to move their funds to smaller issues, the dealers added. As of 11:15 a.m., shares of Neo Solar had risen 4.50 percent to NT$24.40 (US$0.78), with 14.96 million shares changing hands on the Taiwan Stock Exchange. The weighted index on the main board was up 0.28 percent to 9,215.82 points. Among other gaining solar panel stocks, shares of Motech Industries Inc. (??) had risen 4.63 percent to NT$36.15 and shares of Giga Solar Materials Corp. (??) had added 1.09 percent to NT$554.00. "While the broader market moved in a narrow range, investors tended to seek targets with positive leads, like Neo Solar, to park their funds," KGI Securities analyst Phil Chu said. "The company's upbeat assessment toward the July-September period simply triggered the buying." In an annual general meeting held a day earlier, Neo Solar Chairman Quincy Lin (???) told the press that the global solar energy sector is expected to climb out of the current slowdown starting from the third quarter as there have been signs that demand is picking up to push production higher. Lin's forecast echoed a research report released by Taipei-based market advisory firm TrendForce Corp. that said prices of high-efficiency multi-silicon solar batteries have started to stabilize from the middle of May and staged a rebound in early June. The report said that with a peak season approaching, momentum of the solar cell market has been picking up. "Neo Solar's May sales report was also evidence of the market recovery," Chu said. According to Neo Solar, its May sales totaled NT$1.62 billion, up 4.28 percent from a month earlier. Chu said that the current buying was also triggered by a plan that Neo Solar will take its subsidiary, Yield Co., public in Hong Kong in the fourth quarter of this year at the earliest. According to a Neo Solar estimate, after the Hong Kong listing, market capitalization of Yield Co. could hit US$550 million. "Neo Solar shares have appeared resilient in recent sessions, although the broader market suffered heavy foreign institutional selling. Today's positive news helped the stock move a step ahead," Chu said. "But the stock could face strong technical resistance as it moves closer to NT$26. Against the strong showing made by Neo Solar, large-cap stocks remained slow. Taiwan Semiconductor Manufacturing Co., the most heavily weighted stock in the local market, had stayed unchanged at NT$142.50 as of 11:15 a.m. (By Frances Huang)


Updated : 2021-09-20 15:33 GMT+08:00