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Investing.com - Nomura/Instinet downgraded Hiwin Technologies (2049:TT) from Buy to Neutral and lowered its price target to NT$213.00 from NT$279.00 following weaker-than-expected second-quarter performance.
The Taiwan-based motion control company reported second-quarter 2025 sales of TWD5,925 million, representing a 1% quarter-over-quarter increase but a 4% year-over-year decline. This growth rate fell significantly short of historical second-quarter performance, which averaged between 9% and 56% growth over the past five years.
Nomura attributed the underperformance to Taiwan dollar appreciation and conservative customer ordering patterns. Regionally, Asian sales, which account for 62% of total revenue, increased quarter-over-quarter, while other regions experienced declines.
Industrial robots, representing 9% of Hiwin’s total sales, outperformed other segments with 5% quarter-over-quarter and 26% year-over-year growth, driven by increased semiconductor applications.
The company’s gross margin of 29.7% declined slightly by 0.1 percentage points quarter-over-quarter and 1.8 percentage points year-over-year due to foreign exchange impacts, while earnings per share fell to TWD0.38, down 72% quarter-over-quarter and 77% year-over-year, impacted by a TWD400 million foreign exchange loss.
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