Heavy Selling on Closing Day, Silicon Photonics Weak Across the Board
Taiwan stocks faced heavy selling pressure on October 30, the closing day of October, with the index briefly falling below the 45000 mark. The TAIEX closed down 1156.5 points, or 2.49%, at 45,211.83. Silicon photonics concept stocks were under heavy selling pressure, with bellwether Lianya (3081) briefly hitting limit-down intraday and still closing down nearly 8% at 2370, as foreign investors posted net selling for 7 consecutive trading days, withdrawing over 700 million on the day. Among other stocks, Lianjun (3450) fell below the 400 mark in early trading and closed down 5.54% at 409; IET-KY (4971) plunged over 9% to close at 429; Shangquan (3363) fell 3% to close at 474.5; Guangsheng (6442) closed down 5.74% at 1230; Boruowei (3163) fell over half a limit-down to barely hold the 500 mark, closing at 509; Taiyao (6274) neared limit-down several times and closed down nearly 9% at 1265.
Record Third-Quarter Profit, Expansion Targets 6x Capacity
Lianya said at a recent investor conference that, boosted by strong silicon photonics demand, third-quarter after-tax earnings per share (EPS) reached 6.12, with cumulative EPS of 13.88 for the first three quarters, another record profit. The company also plans capital expenditures of over 8 billion to expand production, targeting capacity about 6 times the current scale in 2 years, and has signed a four-year supply agreement with a U.S. data center customer, indicating continued silicon photonics demand.
Polarized Foreign and Domestic Views, Domestic Firm Calls Buy Toward 3300
Lianya has delivered strong operating performance recently, but foreign and domestic institutions are polarized. A Japanese foreign brokerage believes Lianya shares have already priced in expectations and valuations are high, and that a long-term contract does not guarantee demand, and if global AI capital expenditure slows, subsequent operations could still be impacted, giving a sell rating. However, a domestic institution said in its latest report on the 29th that it is optimistic as Lianya order backlog has exceeded full-year 2026 revenue, with continued shipments of 400G and 800G products, 1.6T products also starting to ship, 200G PD certified, and 3.2T ELS for NPO and CPO applications under joint development with customers. The institution estimates fourth-quarter revenue can reach 1.7 billion, up 9% quarter-on-quarter and 165% year-on-year, and with the expansion plan continuing, gives a buy rating with a target price up to 3300.