Capital Market in Taiwan

Taiwan Capital market
Hui-chuan TU
Executive Vice President
Foreign Listing Dept.
Taiwan Stock Exchange
2012.12.6
Outlines
I. Introduction
II. Attractiveness
III. Concluding Remarks
2
I. Introduction
3
Market Highlights
Unit:No.,US$ Billion
TWSE
Singapore Malaysia
HK
Korea
Tokyo
Shanghai
NYSE
NASDAQ
Number of
listed
companies
802
634
929 1,355
786
2,273
953
2,340
2,610
Total
market cap
724
735
451 2,534
1,138
3,342
2,307
13,728
4,802
Average
mkt cap
0.90
1.16
0.48
1.87
1.45
1.47
2.42
5.87
1.84
PE ratio
25.21
9.80
15.26
9.44
12.86
22.20
11.25
16.39
10.84
PB ratio
1.79
1.41
2.26
1.41
1.21
1.13
1.57
1.77
2.86
Note: TDRs not included
Sources: TWSE、WFE (2012.09.30)
4
Mkt Structure on TWSE-”NASDAQ in Asia”
Taiwan
Hong Kong
Other
Sectors
22.19%
Steel
2.80%
Electronics
50.64%
Oil, Elec.
4.18%
Malaysia
Plantation, Others,
5%
2%
Consumer
Goods, 10.94 %
Telecommun
ications,
10.87 %
Plastics
7.71%
Financials
12.48%
consumer
products, 4%
Property, 3%
Other
Sectors,
23.87%
Financials,
30.59 %
Services,
9.17%
Singapore
industrial
Services,
products, 7%
construction, Multi- 6%
2%
Industry,
Properties&
Construction,
14.56%
Others,
10%
Properties,
22%
7%
Finance, 28%
Trading/services,
43%
Finance,
9%
infrastructure
Commerce,
project cos.,
11%
6%
Note: Calculated by Market Cap.
Source: Taiwan Stock Exchange, Singapore Stock Exchange , Hong Kong Exchange, Bursa Malaysia
Transport/
Storage/Co
mmunicati
ons, 14%
Manufactu
ring, 21%
5
Diverse Industries
Categories
High-tech
Non-Hightech
Automobile
Domestic
companies
Listed
392
388
5
Iron and Steel
30
Electrical and Cable
Electric Machinery
Rubber
Plastics
Foods
Trading and Consumers' Goods
Textiles
Shipping and Transportation
Tourism
Others
23 categories
14
35
10
24
20
10
44
19
11
166
780
source: TWSE (2012.11.15)
Foreign companies
Listed
11
12
In pipeline
21
14
1
Total(numbers)
424(51%)
414(49%)
6
30
2
1
3
1
2
1
2
1
1
5
23
6
35
15
40
10
25
21
14
44
20
12
177
838
6
IPO of Foreign Companies
# of companies listed on TWSE
2010
6
2011
12
2012(so far)
5
total
23
Status of pre-listing counseling
# of companies
Approved to be listed
3
Under listing review
3
Under counseling
31
Total
37
Source: TWSE (2012.11.15)
7
II. Attractiveness
 Cross-market Comparisons
 Performances of Foreign Companies
Listed on TWSE
8
Cross-market Comparisons
9
Strengths of TWSE
•
•
•
•
•
High P/E Ratio
High Turnover Velocity
Foreign Investors ‘ Participation
Flexible Funding Schemes
Strong R&D Power
10
High P/E Ratio and Turnover Velocity
P/E Ratio
TWSE
2010
16.04
12.70
17.30
16.67
2011
15.76
7.67
14.30
9.68
2012
25.21
9.8
15.26
9.44
Singapore Malaysia
HK
Turnover Velocity
TWSE
2010
136.74
53.30
32.10
62.17
2011
119.87
45.91
32.82
63.64
2012(note)
98.98
50.19
29.07
43.09
Singapore Malaysia
HK
Note: Date have been annualized
Sources: TWSE , Bloomberg(2012.9.30)
11
Retail Investors Play a vital role
Unit: %
120.0
100.0
80.0
60.0
40.0
20.0
0.0
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12(9
月)
Foreign Juridical Investors
9.4
10.9
15.5
16.2
17.6
22.1
16.3
18.4
21.8
20.1
Foreign Individual Investors
1.3
1.6
2.4
2.2
2.1
2.2
0.0
0.0
0.0
0.0
Domestic Juridical Investors
11.5
11.6
13.3
11.0
13.0
14.0
11.6
13.6
15.5
14.8
Domestic Individual Investors
77.8
75.9
68.8
70.6
67.3
61.7
72.1
68.0
62.7
65.1
year
Sources: TWSE(2012.09.30)
12
Growing Foreign Investors’ Participation
• Mkt. value held by foreign investors (%, end of Sep. 2012): 33.49%
• Trading value by foreign investors (%, Jan. to Sep. 2012): 22.10%
40.0%
Mkt. value held by foreign investors
34.01%
35.0%
Trading value by foreign investors
33.49%
30.0%
24.37%
25.0%
20.0%
22.10%
16.25%
15.0%
10.0%
5.0%
3.6%
0.0%
2000
2001
Source : TWSE(2011.9.30)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Sep.
13
Flexible Funding Scheme
 TWSE offers a flexible funding scheme and many companies
fulfilled their funding needs in TWSE even after their primary
Unit: US$ Billion
listings.
6.00
5.19
5.00
4.42
4.00
3.73
3.55
3.00
2.00
1.00
IPO
2.70
SPO
1.66
GDR/ADR/overseas bond
0.93
0.63
0.33
-
2010
2011
2012(so far)
Sources: TWSE(2012.10.31)
14
Percentage of Fund Raised
Unit: US$ million
2009-Oct. 2012
Year
Fund Raised
Range
average
Total fund
raised
All companies
4~289
28
2,145
Foreign Companies
6~289
52
1,150
Source: Taiwan Stock Exchange(2012.10.31)
15
Lower Interest Rate
• Company A, obtained lower interest rate after
listing in Taiwan.
Bank Loan
Before Listing in Taiwan
After Listing in Taiwan
Interest Rate
7.125%
4.30%
Interest Rate
Average Interest Rate of
Issuing a Five-year
Corporate Bond in Taiwan
Sources: MOPS(2012.10.31)
1.57%
16
Best Place for R&D Centers
China
South East
Asia
Taiwan
• Excellent R&D Environment
• Skill in high tech and
improvement of
manufacturing process ,etc.
• Educated and talented
people
• Legal Protection of
Intellectual Property
• Best place for building R&D
Centers
17
Benefits of Listing in Taiwan
•
•
•
•
•
•
Diversified Funding Strategy
Increase the Popularity of Your Company
Easy to search for Strategy Alliances in Taiwan
Build a Supply Chain with Taiwan Companies
Expand Your Regional Bases in Taiwan
Taiwan is the Gateway to China
18
Performances of Foreign
Companies Listed on TWSE
19
Performance of Foreign Companies Listed for IPO-P/E
 Many foreign companies outperform peer companies in price or P/E ratio
Company name
Price
P/E ratio
F-再生Asia Plastic
88.30
F-亞德AIRTAC
Company name
Price
P/E ratio
10.11
F-茂林GLT
33.00
12.84
145.00
18.32
F-臻鼎ZDT
79.20
15.59
F-慧洋WISDOM
38.00
6.91
F-科納CoAdna
31.10
31.73
F-美食Gourmet
193.00
23.71
F-IML
94.30
10.66
F-科嘉KO JA
43.00
8.98
F-貿聯BizLink
30.90
7.71
F-中租Chailease
56.80
13.89
F-TPK
426.00
12.98
12.60
-
F-晨星MStar
243.00
24.90
F-百和PAIHO SHIH
11.65
16.64
F-康聯Coland
81.10
16.83
F-福貞KINGCAN
49.20
11.26
F-龍燈Rotam
75.40
18.35
F-基勝KEYSHEEN
61.00
10.34
F-大洋Grand Ocean
75.00
17.99
26.00
6.58
32.30
10.95
F-鈺齊 Fulgent
F-永冠 Yeong
Guan
F-東科Eastern Tech
65.00
13.76
F-台南TAINAN
CAYMAN
Note:
means the company is the first in the peer and
the second in the peer.
Source: TWSE , as of 2012.11.15
means
20
Performance of Foreign Companies Listed
for IPO-turnover velocity
 Most foreign companies have higher liquidity than the market.
Company name
Turnover
Company name
Turnover
F-再生Asia Plastic
122%
F-茂林GLT
257%
F-亞德AIRTAC
193%
F-臻鼎ZDT
NA
F-慧洋WISDOM
35%
F-科納CoAdna
F-美食Gourmet
41%
F-科嘉KO JA
F-IML
483%
F-貿聯BizLink
F-中租Chailease
150%
F-台南TAINAN
F-TPK
438%
F-晨星MStar
257%
F-康聯Coland
110%
Note: 1.ZDT and KO JA are listed on 2012.12.26
2.New IPOs in 2012 are not included in calculation.
CAYMAN
F-百和PAIHO SHIH
F-福貞KINGCAN
F-基勝KEYSHEEN
Market Average
3.
means the company has higher turnover ratio than mkt average 119.87%
Source: TWSE , as of 2011.12.31
362%
NA
333%
72%
81%
95%
144%
119.87%
21
Performance of Foreign Companies Listed for IPO-EPS
 Many foreign companies outperform peer companies in EPS.
Company name
101Q3EPS
Company name
101Q3EPS
F-再生Asia Plastic
7.31
F-茂林GLT
1.55
F-亞德AIRTAC
5.71
F-臻鼎ZDT
3.90
F-慧洋WISDOM
3.83
F-科納CoAdna
0.83
F-美食Gourmet
5.75
F-IML
6.95
F-科嘉KO JA
3.38
F-貿聯BizLink
3.31
F-中租Chailease
3.91
F-TPK
28.05
F-晨星MStar
6.66
F-百和PAIHO SHIH
0.58
F-康聯Coland
3.60
F-福貞KINGCAN
3.45
F-龍燈Rotam
2.23
F-基勝KEYSHEEN
3.13
F-大洋Grand Ocean
2.96
1.60
2.73
F-鈺齊 Fulgent
F-永冠 Yeong
Guan
Market Average
1.28
F-東科Eastern Tech
4.15
F-台南TAINAN
CAYMAN
-4.64
Note
means the company has higher EPS than mkt 101Q3 average 1.28
22
Source: TWSE , as of 2012.11.15
IPOs from Diverse Industries
23
IV. Concluding remarks
24
World IPO Market Slowing Down
• Total IPOs (567 cases) in 2012Q3 are fewer than
2011Q3(970 cases) , which means a 42% less.
Chart: No. of IPO Deals in Asian Stock Markets
Unit: No.
Year
TWSE
Singapore
Malaysia
HK
Thailand
2010
17
32
23
96
11
2011
31
22
17
101
12
2012
14(note)
27
13
53
11
Note: There will be 7 more companies listed on TWSE as of the end of 2012.
Sources: Ernst &Young(2012.9.30),TWSE(2012.11.15)
25
Global IPO Activities
• 59% of IPOs in 2012Q3 are from Asian Pacific
Market.
Unit: %,No. of deals
15%
(25)
23%
(24)
2%
(4)
Asia Pacific
59%
(112)
Europe, Middle east and
Africa
North America
Central and South
America
Sources: Ernst &Young(2012.9.30)
26
Recover quicker than others
Trading values recovered quickly from the
European Sovereign Debt Crisis last fall.
Unit: US$ Billion,%
TWSE
Singapore Malaysia
Hong Kong
Jan.
46
19
10.5
85
Sep.
58
23
9.8
89
improved
26%
21%
-0.07%
5%
Sources: WFE(2012.10.30)
27
Win-Win: Foreign Companies List on TWSE
28
See you at the listing ceremony!
Thank you.
29