HONG KONG -- Shares in Taiwan's Eclat Textile surged to a year-to-date high on Wednesday, as investors bet that strong orders at the apparel maker and a policy shift at client Nike would further lift its performance.
The stock price at one point rose 15 New Taiwan dollars, or 4.10%, to NT$380, the highest level since Oct. 25, 2016.
Investors found encouragement Wednesday in the online edition of Taiwanese media outlet newspaper The China Times, which reported that orders at Eclat Textile have been rising.
Eclat Textile supplies fabrics and apparel to global powerhouses such as Nike, Adidas and Gap. In mid-June, Nike announced plans to streamline its product range and shorten development and supply times to keep up with the latest fashion trends.
Investors are betting that the shift will boost global demand for sportswear, resulting in more orders for Eclat Textile.
According to China Times, Eclat Textile's profits for the July-September period -- when shipments of autumn and winter clothing will peak -- as well as earnings for the October-December period, are likely to expand, based on the number of orders it has received.
The mainstream view in the market is that the company's second-half earnings will outperform those in the first half, buoyed by higher sales of sports underwear and other products, according to a report published Wednesday in the online edition of Economic Daily News, a leading local daily.
The publication singled out Eclat Textile as one of the Taiwanese athletic apparel suppliers that will benefit from Nike's policy change.