ASE, Largan shares buck trend, rise 1.44% and 6.84%
By Kathryn Chiu , The China Post
April 26, 2014, 12:01 am TWN
TAIPEI, Taiwan -- Advanced Semiconductor Engineering Inc. (ASE, 日月光) and Largan Precision Co. (大立光電) on Friday braved the downward pressure, closing up 1.44 and 6.84 percent at NT$35.3 and NT$1,875, respectively.
According to local media reports, ASE's shares were backed by better-than-expected first-quarter financial results.
Largan Precision shares yesterday crested further on follow-through buying after more than 10 foreign brokerages categorically raised target prices for the major smartphone camera lens supplier.
Largan's gains were simply an isolated case in a market that is being haunted by fears of further political infighting, Hua Nan Securities analyst Kevin Su told the Central News Agency.
According to United Evening News, Goldman Sachs Group yesterday raised its target price for Largan Precision by 16.5 percent to NT$2,330 — the highest among foreign brokerages operating in Taiwan — while Credit Suisse raised the price for the share to NT$2,100 by the largest percentage among foreign brokerages of 54.41.
ASE, the world's largest independent provider of packaging and testing services, yesterday reported unaudited net revenues of NT$54.69 billion for the first quarter, up by 14 percent year-over-year and down by 15 percent sequentially.
Net income for the quarter totaled NT$3.44 billion, up from NT$2.23 billion from the same time in 2013 and down from NT$5.21 billion from the previous quarter.
Earnings per share for the first quarter were NT$0.44, compared to NT$0.29 for first quarter of 2013 and NT$0.66 for the fourth quarter of 2013.
Looking ahead, ASE expected consolidated gross profit margin is expected to be not less than 20 percent for June quarter, surpassing the levels in the fourth quarter of 2013. ASE put its consolidate revenues for the second quarter at the level of the quarter ending in December of 2013.
ASE's capital expenditure for the full year 2014 is expected to increase by US$200-250 million, subject to adjustments in line with market conditions.