Hon Hai holds most cash of TWSE-listed firms
Hon Hai Precision Industry Co. ( ), the world’s largest contract electronics maker, topped the list of listed companies on the Taiwan Stock Exchange with the largest amount of cash or cash equivalent assets, according to Taipei-based credit information agency China Credit Information Service Ltd. (CCIS).
As of the end of June, Hon Hai, which posted NT$56.07 billion (US$1.70 billion) in net profit in the first half of this year, up 41.14 percent from a year earlier, was sitting on NT$614.52 billion in cash and cash equivalent, the CCIS said, citing statistics.
Taiwan Semiconductor Manufacturing Co. ( ), the world’s largest contract chip-maker, came in second with NT$528.90 billion in cash and cash equivalent as of the end of June, followed by Cathay Financial Holding Co. ( ) with NT$372.12 billion, notebook computer ODM service provider Quanta Computer Inc. ( ) with NT$196.06 billion, and integrated circuit designer MediaTek Inc. (
) with NT$195.82 billion, the data showed. Fubon Financial Holding Co. (
) grasped the sixth place on the list with NT$158.71 billion in cash and cash equivalent ahead of Mega Financial Holding Co. ( ) with NT$132.30 billion, contract notebook computer maker Pegatron Corp. ( ) with NT$112.80 billion, flat panel firm AU Optronics Corp. ( ) with NT$89.75 billion, and CTBC Financial Holding Co. ( ) with NT$81.48 billion, the data indicated.
The CCIS said that the top 20 firms on the list owned more than NT$50 billion in cash and cash equivalent each.
Among the listed companies on the main board, eight owned more than NT$100 billion in cash and cash equivalent each, 21 owned more than NT$50 billion each, and 83 held more than NT$10 billion each.
The credit information firm said that the listed companies on the main board held almost NT$6 trillion as a whole in cash and cash equivalent, indicating that many companies lacked channels to spend their piling funds through investments.
The CCIS urged the government to solve the problems by leading these firms to invest for growth.
In late September, the central bank cut its key interest rates by 0.125 percentage points in the latest quarterly policymaking meeting to boost the economy after freezing rates in the past 16 quarters.
Market analysts said that the rate cut has raised the liquidity level in the market even higher, adding that the government should push for public works projects or industrial development plans to prompt these rich listed companies to spend for the sake of domestic economic growth.