Siliconware shares up on optimism toward sales outlook
Central News Agency
2014-03-06 11:20 AM
Taipei, March 6 (CNA) Shares of Siliconware Precision Industries Co., one of Taiwan's leading integrated circuit packaging and testing services providers, moved higher Thursday morning amid optimism toward its sales on the back of solid demand for high-end services, dealers said. Investors appeared to ignore Siliconware's month-on-month decline in sales for February, but set their sights on a rebound in the global semiconductor industry that is expected to kick off in the second quarter of this year, the dealers said. As of 10:54 a.m., shares of Siliconware had added 1.05 percent to NT$38.40 (US$1.27) with 4.99 million shares changing hands. The weighted index on the Taiwan Stock Exchange was up 0.70 percent at 8,693.09 points. "Despite a month-on-month decline in sales for February, Siliconware still posted better-than-expected sales for the month as the company has made efforts to improve its product mix," KGI Securities analyst Eason Lee said. In a statement released a day earlier, Siliconware said its consolidated sales for February fell 7.47 percent from January, but rose 31.12 percent from a year earlier to NT$5.57 billion. In the first two months of this year, Siliconware posted about NT$11.60 billion in consolidated sales, up 31 percent from a year ago. "Judging from the year-on-year sales growth, the semiconductor business has had a better start this year compared with a year earlier, and the uptrend is expected to continue for the rest of the year," Lee said. "For Siliconware, an improvement in its production line by adding more high-end IC packaging and testing services has boosted the company's competitiveness," Lee said. The February sales decline on a monthly basis resulted from seasonal factors such as the reduced number of working days due to the Lunar New Year holiday, Lee said. Lee said that on the back of the increase in high-end services for communications devices, he expects the average selling price of Siliconware for the first quarter to rise about 5 percent from the fourth quarter of last year, which will lend support to its sales in the current quarter, a traditional slow season in the IC industry. "So Siliconware is likely to feel a limited slow-season effect in the first quarter. I expect the company will only suffer a single digit sequential decline in consolidated sales for the quarter. And the current buying reflects such an upbeat mood," Lee said. "More important, the foundry business is expected to bottom out in the second quarter after intensified efforts in inventory adjustments, and Siliconware will be one of the beneficiaries of the trend," he said. However, Lee also said that as shares of Siliconware have been moving closer to the nearest technical resistance level at around NT$39.00, investors should stay alert over a possible correction in the short term. (By Jalen Chung and Frances Huang)
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