Macronix may distribute dividend of NTD3 per share and hit limit-up

Catalyzed by high dividend yields, memory sectors soared today on 22rd. It is rumored that Macronix (2337-TW) may distribute dividend of NTD3 per share as it was in 2000. Macronix hit limit-up to NTD22.6 in the intraday trading session with trading volume of >200,000. In addition, Winbond (2344-TW) and Apacer (8271-TW) rose more than 3%, and Nanya Technology (2408-TW) and ADATA (3260-TW) also rallied.

The memory sectors"1Q~3Q18 profit set new highs. The market conditions in 4Q18 reversed and the price fell. However, their FY18 core earnings was still good. From the perspective of companies that have announced their earnings report, Nanya Technology"s FY18 EPS was NTD12.8, Macronix "s EPS was NTD4.94, and Winbond’s EPS was NTD1.87.

Institutional investors pointed out that catalyzed by the following: a) rate-hike stocks, including passive components, poly wafer sectors, etc., rebounded after previous decline, b) the memory sectors has already reflected the profit slowdown, c) the memory sectors’ FY18 profit is expected to be bullish and dividend payout can be expected, the memory sectors has turned strong today.