Hon Hai at year-to-date high ahead of shareholders' meetings
Investors are betting big on glowing business forecasts
NORIKO OKEMOTO, NQN staff writer
HONG KONG -- Shares in Taiwan's Hon Hai Precision Industry, better known as Foxconn Technology Group, rose for the third straight day on Monday in Taiwan on expectations of optimistic business forecasts at Sharp's and Hon Hai's shareholders' meetings later this week.
Sharp's meeting is scheduled for Tuesday, while Hon Hai's is on Thursday.
The company's stock price briefly rose 5.000 New Taiwan dollars, or 4.76%, from Friday to NT$110.00, hitting its year-to-date high for the first time since June 5. It closed NT$4.500, or 4.28%, higher at NT$109.50.
Taiwan's United Daily News on Monday ran an article entitled, "Did Sharp's miracle further strengthen the Hon Hai empire?" Market watchers believe that acquiring Sharp has helped Hon Hai boost its sales and brand power.
Meanwhile, Hon Hai Chairman Terry Gou is expected to speak about his company's business plan for the second half, Sharp's business plan, cooperation with SoftBank Group and investment in Toshiba's chip unit at the annual shareholders' meeting.
Today's high boosted Hon Hai's market capitalization to more than NT$1.87 trillion. It is still far less than Taiwan Semiconductor Manufacturing's more than NT$5 trillion, but the company is increasing its presence in Taiwan.
Some market experts reckon that Hon Hai has evolved from a company offering electronic manufacturing services into one as a comprehensive parts maker. By Monday, several foreign-affiliated brokerages have reportedly raised their target stock prices.