Bloomberg News

Taiwan Stocks: AU Optronics, Chimei Innolux, Epistar, Mediatek

June 18, 2012

Shares of the following companies had unusual moves in Taiwan trading. Stock symbols are in parentheses and prices are as of the close in Taipei.

The Taiex Index rose 1.8 percent to 7,281.50, the highest close since May 31.

Flat-panel makers: AU Optronics Corp. (2409) (2409 TT) rose 2.1 percent to NT$12.20, the highest close since May 31. Chimei Innolux Corp. (3481) (3481 TT) advanced 1.7 percent to NT$12.15, the highest close since June 1.

Technicolor SA’s Thomson Licensing unit lost its U.S. patent-infringement cases over liquid-crystal displays in computer and television screens against Taiwanese manufacturers including AU Optronics and Chimei Innolux. The companies didn’t violate Thomson Licensing’s patent rights, the U.S. International Trade Commission said on June 15 in a notice posted on the agency’s website.

Epistar Corp. (2448) (2448 TT), a light-emitting diode maker, jumped 4.6 percent to NT$66.60, its fourth day of gains. The company was rated buy in new coverage by William Yang, an analyst at Deutsche Bank AG. The company is likely to be the key beneficiary of demand for LED lighting outsourcing, Yang wrote in a report.

Hon Hai Precision Industry Co. (2317), (2317 TT), the world’s largest electronics maker, rose 2.4 percent to NT$86.50, the highest close since May 31. Gross margins will likely recover, said Terry Gou, chairman and founder of the company. He spoke at the annual shareholder meeting today in Taipei. Shareholders also approved the board’s proposal to pay NT$1.5 cash and 10 shares for every 100 held for 2011.

Mediatek Inc. (2454) (2454 TT) jumped 4.3 percent to NT$276.50, its highest close since April 19. The chip designer was rated overweight, the equivalent of a buy, at JPMorgan Chase & Co., which cited the stock as a “core holding” for the mass market smartphone trend.

Yang Ming Marine Transport (2609) (2609 TT), a shipping company, advanced 4.1 percent to NT$12.75, the highest close since May 11. The company agreed to sell 68 million shares in Kao Ming Container Terminal Corp. to Ports America International Holdings Cooperatief U.A. for $45 million, it said in a statement to Taiwan stock exchange.

To contact the reporter on this story: Ee Chien Chua in Singapore at echua27@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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