Market Falls Below Quarterly Line as Two Stocks Buck Trend to Close Higher
Taiwan stocks staged an open-high-close-low session on the 22nd, with the 47,000-point level briefly retaken then lost, closing below quarterly-line support amid heavy selling pressure. 力積電 (6770) closed at 66.4, up 0.3%, while 鴻勁 (7769) rose 2.83% to close at 5275, both closing higher on expanded volume and clearly outperforming the broader market. Institutions are positive on the subsequent operating growth momentum of both companies and have given both buy ratings, with the target price for 力積電 up to 85. Based on the closing price of 66.4 on the 22nd, there remains about 28% potential upside.
力積電 Benefits From Memory Recovery, Focus on Price Hikes and Capacity
力積電 has recently been driven by a recovery in the memory industry cycle, with its operating outlook gradually gaining institutional favor, as market funds continue to focus on rising memory prices and improved capacity utilization as profit opportunities. Institutions noted that subsequent growth momentum comes not only from the upward memory price cycle, but also from integrated passive device (IPD) capacity allocation adjustments and improved production yields after factory relocation. If related adjustments are gradually reflected in operating performance, it will help improve capacity utilization efficiency and profitability. Measured against 2027 estimated earnings, institutions believe the current share price has not fully reflected the potential benefits of subsequent product price adjustments and capacity recovery, and therefore maintain a buy rating with a target price of 85. Key indicators to watch include whether fourth-quarter memory price increases materialize as expected, whether interposer wafer business recovers before year-end, and execution of 2027 long-term supply contracts. If these factors bring substantive revenue contributions, they will become important catalysts for profit improvement.
鴻勁 Rebounds 2.83% as Institutions Focus on Earnings and Orders
鴻勁 shares had previously fallen below key moving averages, with the market turning cautious on its near-term operating outlook, but rebounded strongly by 2.83% on the 22nd to close at 5275. Institutional analysis said prior pressure mainly reflected concerns that NVIDIA's next-generation Rubin GPU launch schedule could be further delayed, affecting related supply-chain shipment progress. However, with strong third-quarter revenue results, institutions believe the market may have overreacted to short-term uncertainties, with growth potential still worth expecting. Institutions expect actual third-quarter earnings performance and fourth-quarter operating outlook both have a chance to beat prior market expectations, and if subsequent earnings and order momentum are confirmed, it will help re-support market confidence in the company's profit growth, hence also giving a buy rating. Besides spot share performance, related warrants have also attracted market attention, with in/out-of-the-money range within 15% and relatively high leverage including 力積電台新61購03, 力積電元大61購02, as well as 鴻勁群益64購05 and 鴻勁凱基64購08. Taiwan stocks were affected in the short term by the index falling below the quarterly line and weakening market sentiment, but some stocks with industry growth themes still attracted funds, and whether the two stocks can continue to strengthen will depend on whether fundamental positives gradually materialize. Warrants carry leverage and time-value decay risks, and investors should note volatility and expiry conditions, evaluate prudently and bear their own investment risks.