Her­mes mar­ket cap cut by over NT$20 bil­lion in 2 days amid con­cern

The China Post - - LOCAL -

Mar­ket cap­i­tal­iza­tion Her­mes Mi­cro­vi­sion Inc. (

), a semi­con­duc­tor in­spec­tion tool and equip­ment sup­plier, was cut by more than NT$20 bil­lion ( US$ 631 mil­lion) af­ter its share price was ham­mered in the past two trad­ing ses­sions amid lin­ger­ing con­cerns over the global in­te­grated cir­cuit in­dus­try.

Shares of Her­mes fell 10 per­cent, the daily max­i­mum de­cline, on the lo­cal over- the­counter (OTC) mar­ket Tues­day to close at NT$1,280.00, with 1.07 mil­lion shares chang­ing hands af­ter a 10 per­cent plunge seen a ses­sion ear­lier. In the past two ses­sions, the stock fell NT$295, or about 18.7 per­cent, to sharply push down its mar­ket cap.

The stock re­mained the sec­ond-most ex­pen­sive one in the lo­cal mar­ket be­hind only smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ), which closed up 1.54 per­cent to end at NT$2,970.00 on the lo­cal main board.

At the end of Tues­day’s ses­sion, Her­mes’ mar­ket cap stood at NT$90.88 bil­lion, down about NT$20.9 bil­lion from NT$111.83 bil­lion recorded at the end of the July 31 ses­sion be­fore the in­te­grated cir­cuit pro­duc­tion equip­ment maker held an in­vestor con­fer­ence in which it cut its sales forecast for 2015.

Her­mes shares faced heavy down­ward pres­sure soon af­ter the lo­cal OTC mar­ket opened

of Tues­day as its lower- thanex­pected sales forecast dis­ap­pointed in­vestors, deal­ers said. Selling es­ca­lated in the mid­morn­ing ses­sion to push down the stock to down 10 per­cent, and the weak­ness con­tin­ued into the end of the ses­sion, they said.

In the July 31 in­vestor con­fer­ence, Her­mes said that since global de­mand for high- tech gad­gets has shown signs of weak­en­ing, many IC firms have put their in­vest­ments in pro­duc­tion equip­ment on hold.

Her­mes said that while the com­pany re­mains con­fi­dent in the global IC in­dus­try in the long term, it fears that its sales growth for 2015 will be com­pro­mised by the cur­rent de­mand weak­ness.

As a re­sult, Her­mes said in the in­vestor con­fer­ence that its 2015 con­sol­i­dated sales could grow 5 per­cent-20 per­cent from a year ear­lier, a cut from its pre­vi­ous es­ti­mate of a 25 per­cent- 35 per­cent year- on- year in­crease.

The deal­ers said that mar­ket sen­ti­ment to­ward Her­mes was also hurt by moves by sev­eral for­eign bro­ker­ages to cut their tar­get prices on the stock by tak­ing the Tai­wanese firm’s dis­ap­point­ing sales forecast into ac­count.

One Euro­pean bro­ker­age has low­ered its tar­get price on Her­mes shares to NT$ 1,300 from NT$2,500, while a U.S.based bro­ker­age has trimmed its tar­get price to NT$ 1,200 from NT$1,318.

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