Walsin Technology Hits Daily Limit Down on First Day of Trading Suspension; Down Nearly 40% Since July

Walsin Technology (2492-TW), a passive components manufacturer, has recently experienced a sharp short-term decline in its stock price. Starting today (16th), the company has been placed under trading restrictions by the stock exchange as a special monitoring stock. The stock closed at the daily limit down price of NT$341.5 in today’s session, marking a 39.5% decline since July.

According to yesterday’s announcement from the exchange, Walsin Technology was designated as a special monitoring stock because its cumulative closing price drop over the past six trading days reached 36.43%. Additionally, the price difference between the closing prices from six trading days ago to two trading days ago amounted to NT$120.5. As a result, from July 16 to July 29, trades will be executed approximately once every 20 minutes.

Despite the stock volatility, Walsin Technology remains optimistic, citing strong AI demand. The company notes that over the past 2–3 years, customers have not accumulated excessive inventory, keeping inventory levels relatively low. This has led to a continuously rising book-to-bill (BB) ratio. Currently, the company is focusing on communication and power applications within the AI sector, with a target of generating 15–20% of its revenue from AI-related products in 2023.

Walsin Technology believes that tight supply and demand conditions in the passive components market may persist beyond next year. The company is actively expanding its production capacity, estimating a 10–15% increase in 2023, with further expansion planned for 2024.