TAIPEI: Revenues of the nation’s public traded companies surged more than 18 percent in September on the back of high consumer demand and the electronics industry piling up inventory.
A total of 104 public companies — listed either on the Taiwan Stock Exchange or the Taipei Exchange — posted record sales in September, marking the best monthly performance so far this year.
Of these outperforming companies, 42 are listed on the Taipei Exchange, mostly in the electronics, biotechnology and fiber-optic communications industries.
The listed companies pulled in a combined NT$2.8 trillion in revenues in September. The figure represented an 18.3-percent growth from the previous month and 0.6-percent rise from the same period last year.
Some companies reportedly reached record sales two months in a row, including Parade Technologies Ltd. in the Apple Inc. supply chain and WiseChip Semiconductor Inc in the electronics sector.
Equally outperforming were biomedical businesses TCI Co., Ginko International Co. and Radiant Innovation Inc. and fiber-optic communications players LandMark Optoelectronics Corp., TrueLight Corp. and ACX Corp. that ramped up production to meet China’s increasing optical fiber demand.
Reasons for the Rebound
Huang Wen-ching, an associate manager at Taishin Securities Investment Advisory (TSIA), attributed soaring sales to greater demand during the height of the electronics season that usually occurs in the third and fourth quarter as well as the New Taiwan dollar’s recent depreciation against the greenback.
Companies that conducted transactions in U.S. dollars would post higher revenues after the currency is converted into New Taiwan dollars.
Now that the Chinese government is pushing for more fiber-optic communications purchases, the boost in demand has wide ramifications for Taiwanese manufacturers, Huang said.
Car parts and components as well as electric car-concept stocks have also enjoyed a rebound thanks to favoring policies launched by the U.S. government.
Integrated circuit design companies and other players in the Apple supply chain, on the other hand, have benefited recently from the newly unveiled iPhone 6s.
Huang is optimistic that in the near future, these outperforming firms will also hit record sales again in the booming market. However, the number may top out in October and begin to slide afterwards, the investment manager cautioned.
