Reported 7 months ago
YH E&M (3622) benefits from Taipower's robust grid plan, turning around with its mechanical and electrical business after a recent consolidation phase. The stock saw a significant surge on June 14, reaching the daily limit at 76.5 yuan with a weekly gain of about 24% and trading volume reaching 15,000 shares. YH E&M mainly produces cable terminal boxes and connectors, serving major cable factories in Taiwan. Taipower's 10-year, 560 billion yuan robust grid plan is expected to bolster the company's performance over the next few years. With the current order status for this year indicating a utilization rate similar to last year at 70%-80% and nearing full capacity, the overall performance is expected to match last year's levels. In terms of the optoelectronics business, vertical integration and increased production in Vietnam are expected to improve the financial performance.
Source: YAHOO