Innolux shares hit fresh high
Innolux Display Corp (群創光電), the world’s second-largest assembler of flat-screen computers, rose to its highest level in eight months in Taipei trading after Macquarie Group Ltd increased its target price on the stock.
Miaoli-based Innolux gained 4.7 percent to NT$45.5 as of 1:20pm, set for the highest close since Sept. 9, while the benchmark TAIEX index rose 1.2 percent.
Macquarie increased Innolux’s target price to NT$57 from NT$34, saying Sony Corp’s restructuring plan should benefit Innolux because it would result in more LCD TV outsourcing business. The research house kept its rating on the company at “outperform.”
“We believe Sony is among one of several top-tier TV brands that Innolux will ship to this year,” Macquarie analysts Nicholas Teo and Joyce Wang wrote in a report yesterday.
Sony forecast a straight second full-year loss on Thursday and said it would stop making LCD TVs and electronic cables at two plants in Indonesia and in the US.
Vietnam approves joint venture
China Steel (中鋼) said yesterday authorities in Vietnam approved its application to set up a joint venture there with Japan’s Sumitomo Metal Industries.
In a statement, China Steel said it received approval from the Vietnamese government last week to establish the joint venture, to be capitalized at US$1.15 billion with Sumitomo Metal Industries and Taiwanese partners.
China Steel will take a 51 percent stake in the new venture, China Steel Sumikin Vietnam Joint Stock Co, which is expected to produce 1.6 million tonnes of cold rolled steel products annually for auto and home appliance use.
While the global economy has been hit hard, “the partners of the joint venture will go ahead with the project based on our long term investment strategies,” China Steel said in the statement.
The joint venture is aimed at ASEAN markets.
Airbus passes test flight
The first Airbus A320 plane assembled outside Europe made a successful four-hour test flight from Tianjin, China, yesterday, Airbus said.
“This A320 assembled in China unquestionably demonstrated the same quality and performance as those assembled and delivered in Hamburg or Toulouse,” Fernando Alonso, head of flight testing for Airbus, said in a statement.
The first Tianjin-assembled A320 is scheduled to be delivered to Dragon Aviation Leasing next month for operation by Sichuan Airlines.
Airbus said it has orders for more than 700 planes from Chinese customers, mostly for models from the A320 series.
Its Tianjin assembly line is scheduled to deliver 11 A319 or A320 planes this year.
The assembly plant, opened in September, is a joint-venture between Airbus and a Beijing-backed consortium.
Chinese state media last year said total investment in the plant was between 8 billion yuan and 12 billion yuan (US$1.2 billion to US$1.8 billion).
NT dollar loses ground
The New Taiwan dollar fell to its lowest level in more than a week as economic reports damped optimism that a global recession is abating, prompting investors to seek safer bets than emerging-market assets. Bonds advanced.
The NT dollar fell against the greenback after overseas investors cut their holdings of local shares for each of the past six days and a technical indicator showed a reversal of direction was due.
The currency fell 0.1 percent to close at NT$32.994, according to Taipei Forex Inc. It earlier touched NT$33.15, the weakest level since May 7.
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