UBS upbeat on Taiwan handset supply chain
Central News Agency
2014-06-26 07:17 PM
Taipei, June 26 (CNA) UBS Securities expressed optimism Thursday about select segments of Taiwan's handset supply chain despite an expected slowdown in the global smartphone market. "We continue to be positive on the camera lens and metal casing subsectors given the increasing adoption of innovative new designs such as three-dimensional (3D) effect and thinner form factor," Arthur Hsieh, lead analyst of electronics hardware at UBS, told a press briefing at the firm's Taiwan investor conference. Even though global smartphone shipment growth could decelerate based on high market penetration, opportunities still exist for Taiwanese suppliers due to the emergence of the "super-mid market," Hsieh said, referring to a boom in the mid-range smartphone segment. Hsieh's comment reflects the recent strong buying of shares of Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., which jumped briefly to a record high of NT$2,310 (US$77.15) on June 23 in Taipei trading. Shares of Catcher Technology Co., a casing supplier for Apple, also closed at a record high of NT$294 on June 10 in Taipei, backed by optimistic forecasts by several foreign brokerages. Unlike the handset supply chain, Hsieh expected the personal computer industry to become a "safe harbor" to provide investors with a proper balance of risk and return. "We think the PC (shipments) could continue to surprise on the upside given most people are still skeptical on the sustainability of the recovery," Hsieh said. He noted that PC designs have continuously to evolve to meet different user scenarios, while the improving affordability of PCs should also help the industry demand. "(A) healthy balance sheet and decent dividend yield should support the share prices of PC companies," the analyst explained. (By Jeffrey Wu)
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