Taiwan Stock Market Outlook: Trend Shifts and Transformations
Preface
On April 28, the Taiwan stock market is poised for a potential uptrend following last week's 477-point rally. The easing of market anxiety, influenced by U.S. President Trump's seemingly softer tariff stance towards China, suggests a positive outlook despite potential mixed messages ahead. As global markets rebound, Taiwan's slightly lagging performance offers a chance for catch-up. However, caution is advised due to unpredictable factors and the Labor Day holiday closure that could cause fluctuations.
Lazy bag
Key takeaways: Quanta transitions from manufacturing to independent R&D, enhancing international presence. Shipping indexes decline with a 40% drop in China-U.S. freight volumes.
Main Body
Quanta (2382-TW) is undergoing significant transformation under Chairman Lin Bai-li, marking its 37th anniversary. The company is navigating the second phase of AI's rapid growth by launching NVIDIA's (NVDA-US) GB200 and GB300. Quanta is making a strategic shift from traditional manufacturing to independent research and development, targeting a more global footprint.
Meanwhile, Shanghai’s Containerized Freight Index (SCFI) reports a continuous decline, with rates slipping 22.74 points to 1347.84, a 1.66% decrease. This reflects a substantial 40% reduction in China-U.S. cargo volumes, contributing to a cautious market sentiment.
Furthermore, Evergreen Marine (2603-TW) retains an optimistic outlook, despite acknowledging visibility challenges in 2023, particularly on the Trans-Pacific lanes. Having secured long-term contracts with major North American retailers, the CEO stresses a 'prudent optimism' approach, expecting to finalize agreements with smaller clients by April's end.
The IC testing leader, King Yuan Electronics (2449-TW), forecasts significant revenue growth as it expands its global production base, aiming to achieve a 'T+1' setup to diversify supply chain points.
The Ministry of Economic Affairs has introduced measures to curtail 'country of origin' fraud, requiring exporters of Taiwan-manufactured goods to the U.S. to provide a Certificate of Origin starting May 7, 2023.
Key Insights Table
| Aspect | Description |
|---|---|
| Quanta's Transformation | Shifting from manufacturing to R&D for a stronger international presence. |
| Shipping Decline | SCFI drops as China-U.S. shipment volumes fall by 40%. |