Hon Hai holds most cash of TWSE-listed firms

The China Post - - LOCAL -

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.

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