Hon Hai Guoju Strategic Alliance’s Stock Price Continues to Firm in Early Trading

Hon Hai and Yageo  entered into a strategic alliance. The stock price strengthened in early trading. Hon Hai reached 78.4 yuan, up 1.95%, and its market value increased to NT$1.08 trillion. To 348 yuan, a strong increase of 4.97%.

Hon Hai Group and Yageo Group announced a strategic alliance on the 28th. In the future, they will combine the resources of the two groups to attack the fields of digital health care and electric vehicles.

According to industry analysts, through strategic alliances, Yageo Group will consolidate downstream outlets, Hon Hai Group will stabilize passive component prices in the short-term, consolidate regional supply in the medium-term, and long-term cooperation between the two parties will attack electric vehicles. In addition, the two parties have cooperated to accelerate the formation of the electronic industry chain in New Taipei City, and also to respond to changes in the supply chain competition in the US-China trade war.

Hon Hai’s operations in the fourth quarter are expected to benefit from the new 5G version of the iPhone assembly OEM. The legal person estimates that its single-quarter performance can exceed NT$1.75 trillion, the second highest in history, and its profit is expected to increase by 45% to 48% quarterly. The net profit per share in a single quarter exceeded 3.1 yuan.

The legal person is looking at the quotation trend of Yageo’s products. It is estimated that the pricing of KEMET tantalum capacitors under Yageo will increase by about 10% to 15% in the third quarter. This is mainly due to its leading position in the tantalum capacitor market. In addition, supply Relatively tight.

The legal person pointed out that this will also help Yageo Group’s profit performance in the second half of the year, and make up for signs of slow demand for standard multilayer ceramic capacitors (MLCC).

Observing the performance of the utilization rate, the legal person estimates that the capacity utilization rate of Yageo’s chip resistors in the third quarter will be close to 60%.

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