Yuanta on expansion drive, takes 9.5% stake in Singaporean house...05.18.2001-Primasia News-Taiwan

Primasia News, Taiwan

05.18.2001
Yuanta on expansion drive, takes 9.5% stake in Singaporean house

Yuanta Core Pacific Securities (6004 'Yuan Da Zheng') yesterday announced it will take a 9.5% stake in Kim Eng Holdings, a securities brokerage based in Singapore. The move comes in line with our expectations as we had learned from the company earlier that it was in strategic alliance talks with several Singaporean and Chinese brokerage houses.
Kim Eng has operations in London, New York, Hong Kong, the Philippines and Thailand. The acquisition will boost Yuanta's market share in Thailand's brokerage business to 25% from 8%.
As of last month, Yuanta commanded the largest share of Taiwan's brokerage market with 7.9%, although this figure shows a slight decrease compared to the beginning of the year. The company earned NT$209m in April, ahead of second place Fubon Securities (6007 'Fu Bang Zheng') with NT$177m.
VB Primasia Investment Opinion: We expect a gradual recovery in market turnover in 3Q01. Given Yuanta's ambitious expansion plans in Asia and its high operational efficiency, we recommend ACCUMULATE this counter.