HTC shares end at a record low on the Tai­wan Stock Ex­change

The China Post - - TAIWAN BUSINESS -

Shares of Tai­wan-based smart­phone ven­dor HTC Corp. ( ) in­curred more losses to close at a new low on the Tai­wan Stock Ex­change Wed­nes­day since the stock was listed in March 2002.

Deal­ers said that the sell­ing re­flected a lack of in­vestor con­fi­dence in HTC’s out­look at a time when fiercer-than-ever com­pe­ti­tion in the global smart­phone mar­ket has im­posed tremen­dous pres­sure on the firm.

Shares of HTC fell 5.79 per­cent Wed­nes­day to close at NT$92.80 ( US$ 3.01) with 25.41 mil­lion shares chang­ing hands. The weighted in­dex on the TWSE ended down 0.6 per­cent at 9,556.52 points.

The stock ini­tially staged a tech­ni­cal re­bound from re­cent heavy losses, but sell­ing re-emerged and es­ca­lated to push down the share price into neg­a­tive ter­ri­tory, and the weak­ness con­tin­ued into the end of the ses­sion.

“HTC shares even fell be­low its book value per share to­day. The stock has be­come tech­ni­cally frag­ile and more down­ward pres­sure could fol­low,” Ta Ching Se­cu­ri­ties an­a­lyst Andy Hsu said. As of the end of March, HTC’s book value stood at NT$97.20 per share.

The stock fell be­low the NT$100 mark Mon­day af­ter the lo­cal me­dia cited sources from the sup­ply chain as say­ing that HTC’s sup­pli­ers have cut ship­ment fore­casts for the flag­ship model — the HTC M9 — by 30 per­cent to 3.2 mil­lion units for 2015 amid es­ca­lat­ing com­pe­ti­tion in the high-end smart­phone mar­ket.

In an an­nual gen­eral meet­ing held Tues­day, HTC Chair­woman Cher Wang ( ) apol­o­gized to share­hold­ers for the dis­ap­point­ing per­for­mance that sent its share price into a tail­spin.

Since the be­gin­ning of this year, HTC shares have lost more than 30 per­cent. Wed­nes­day’s closing level was even far be­hind a record level of NT$1,300 seen in late April 2011.

Wang told share­hold­ers

that her com­pany is sched­uled to un­veil new high-end mod­els in Oc­to­ber and promised to con­tinue to cut op­er­at­ing costs and raise ef­fi­ciency, while seek­ing new sales re­sources to help the com­pany es­cape the dol­drums.

“Judg­ing from the stock’s move­ment to­day, I think that many in­vestors re­main wary of HTC’s prom­ises,” Hsu said. “Amid bear­ish sen­ti­ment to­ward the com­pany, it is hard to say that the stock will find tech­ni­cal sup­port any time soon.”

Also in the Wed­nes­day trad­ing ses­sion, shares of in­te­grated cir­cuit designer VIA Tech­nolo­gies Inc., an af­fil­i­ate of HTC, fell 10 per­cent, the max­i­mum daily decline, to close at NT$7.07 af­ter VIA Pres­i­dent Chen Wen-chi told share­hold­ers that he could not be sure whether the com­pany will turn a profit this year.

Chen is the hus­band of Wang, who is also chair­woman of VIA, which had ac­cu­mu­lated a net loss of NT$3.42 bil­lion as of the end of last year.

CNA

Acer Inc. founder and Hon­orary Chair­man Stan Shih, third left, and Me­di­atek Inc. Chief Mar­ket­ing Of­fi­cer Jo­han Lo­de­nius, sec­ond left, pose at COM­PU­TEX Taipei 2015 at the Taipei In­ter­na­tional Con­ven­tion Cen­ter, yes­ter­day.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.