Bullish Market for Million-Dollar Stocks Drives Heavy Allocation to Sinbon and Chuan-Hu in 00912 and 00406A

Among listed and OTC companies in Taiwan, there are currently two "million-dollar stocks," namely Sinbon, the stock king, and Chuan-Hu, the stock queen. As Chuan-Hu's share price continues to rise, the gap between it and Sinbon is gradually narrowing. CTBC Asset Management's two Taiwan equity ETFs — CTBC Taiwan Smart 50 (00912-TW) and Active CTBC Taiwan Income (00406A-TW) — both hold Chuan-Hu and Sinbon, with combined weightings of approximately 8.8% and 6.8% respectively. This allows investors to participate in the growth of million-dollar stocks without needing to invest millions, while also diversifying individual stock risk through a basket of equities.

Chuan-Hu is currently the second-largest holding in CTBC Taiwan Smart 50 (00912-TW), with a weighting of about 6.15%; Sinbon ranks among the top ten holdings with a 2.63% weighting. CTBC Asset Management stated that the increased weighting in Chuan-Hu reflects not only its market capitalization growth but also its strong performance in factors such as "momentum, quality, and growth," which contribute to higher allocation.

Chuan-Hu's stock price has maintained a strong performance over the long term, exhibiting solid price momentum. Additionally, its gross margin, operating margin, and profit growth have all remained at high levels, resulting in outstanding fundamental performance. Moreover, driven by rapidly growing demand for AI servers, both revenue and profits have risen simultaneously, aligning well with the growth factor screening logic.

Unlike typical market-cap-weighted Taiwan equity ETFs, CTBC Taiwan Smart 50 considers not only market size but also factors such as "growth, quality, and momentum" in stock selection. Chuan-Hu performs exceptionally well across these indicators, making it a key holding.

In addition to 00912, the actively managed CTBC Taiwan Income ETF (00406A-TW), which has seen rapid trading volume growth recently, continues to increase its position in Chuan-Hu. The ETF holds Chuan-Hu and Sinbon at 4.3% and 2.4% respectively, totaling 6.8%.

Institutional analysts note that Chuan-Hu benefits from rising demand for high-end rails due to AI server upgrades, leading to strong profitability in the first half. Its core product — AI server rails — benefits from NVIDIA's GB300 and Rubin platforms, as well as ongoing data center expansions by cloud service providers (CSPs), ensuring robust operational growth momentum in the future.

Analysts also remain optimistic about Sinbon's prospects. Whether it's NVIDIA's GB300 and Rubin platforms or ASIC servers developed by Google and Meta, any new server deployment requires BMC (Baseboard Management Controller) chips. The market expects Sinbon's revenue growth this year could reach 40% to 50%, with visibility extending to 2027. While many AI-related stocks are still waiting for new products to scale, Sinbon's AI business opportunity is already directly reflected in its earnings. Future growth drivers include not only increased shipment volumes but also unit price improvements driven by next-generation products.

*Disclaimer: References to individual stocks, funds, or futures products in this article are for informational purposes only and do not constitute investment advice. Investors should make independent judgments, carefully assess risks, and bear their own profits and losses.