01.29.2001
Higher earning forecasts from securities companies

• Taiwan securities companies are expected to post better earnings in coming months due to the rebound of the stock market in Jan. 2001. Among companies announcing profits in Jan., many showed a large increase MoM.

• Although some companies post earnings quarterly, many have already realized and announced Jan. gains to improve previous results. Capital (6005 'Qun Yi Zheng') realized a profit of NT$300m, and Tai Yu Securities Co Ltd (6002 'Tai Yu Zheng') earned more than NT$100m.

• Taiwan Securities Co Ltd (6010 'Tai Zheng Zheng') wrote back NT$500m in Jan.. Polaris (6011 'Bao Lai Zheng') wrote back NT$250m.

• Another securities company, Yuanta Securities Co. Ltd (6004 'Yuan Da Zheng'), has announced an aggressive pre-tax earnings target this year of NT$7b, a 49.2% increase compared to 2000’s earnings with the company expecting to write back a large fraction of provisions made last year.

• Securities companies are very optimistic about Taiex performance for 2001, and we expect to see earnings strong growth this year.

WilliamFong@Primasia.com +886-[0]2-2547-8864