Focus Stock: Xin Hing, a Favorite of Investment Trusts, Is Unobtainable Today

Taiwanese IC substrate manufacturer Xin Hing (3037) is seeing a significant rebound in its stock price after a period of decline. Following its earnings conference, major foreign investment institutions have broadly upgraded their target prices for the company, with some analysts projecting a potential rise to NT$1,500.

Despite a recent sharp pullback in the broader Taiwanese stock market, Xin Hing's stock experienced a surge, briefly hitting the daily limit on the previous day before being pulled back. However, domestic investment trusts have shown strong buying interest, acquiring 2,515 shares, counteracting the 1,657 shares sold by foreign investors. On the current trading day, Xin Hing opened at its upper limit of NT$787, with over 2,691 shares traded and more than 21,000 shares pending at the limit buy order, indicating strong investor demand.

ABF substrate and copper-clad laminate (CCL) related stocks are currently the strongest performers within the PCB sector. Analysts anticipate that ABF substrate prices will increase further in the second half of the year, which is expected to boost Xin Hing's gross profit margin and overall profitability. The company has increased its capital expenditure for the year to NT$53.7 billion, with 80-85% of this investment directed towards ABF substrates. Products related to Artificial Intelligence (AI) already accounted for over 60% of Xin Hing's revenue in the first half of the year, and this proportion is projected to rise to 70% in the second half.