Can the Taiwan Stock Market Stabilize in Q3? Experts Reveal These Stocks to Add: The Market May Have Many Undercurrents

The Taiwan stock market has recently shown significant corrections and entered a high volatility adjustment period. Regarding this, Xie Fuxu, the chief editor of "Jin Zhoukan - Stock Assistant E-Report," pointed out in the program "Financial One Way" that many AI concept stocks in Q3 have correction amplitudes of more than 20%, with some reaching 50%. After the market rebounded more than 7% last week, he reduced stocks closely related to the market and increased cash-like positions such as bond-type index stock funds and non-investment-grade bond ETFs.

Xie Fuxu believes that the market in Q3 appears calm on the surface but is actually a bit risky. Although TSMC's decline from its high point is only 5.13%, which is very little, and TSMC, as the largest market capitalization stock in Taiwan, makes the market seem stable. However, many AI concept stocks currently have correction amplitudes of more than 20%, with some reaching 50%. This market looks calm, as if you can jump in and play, but there may be many undercurrents inside.

Xie Fuxu: Hua Xin's 21% stake in Hua Bang Electric is the most attractive Xie Fuxu mentioned that most of the stocks he holds have already gone ex-dividend. After the market rebounded more than 7% last week, he also reduced some stocks, mainly those closely related to the market such as Junyi Securities (6005). In addition to this, he also increased his holdings in Shenji (3005), Hua Xin (1605), etc. Although China's stainless steel industry showed internal rolling and a significant drop in nickel prices last year, Hua Xin's gross margin has risen from the bottom, and its main business is improving. In the wire and cable sector, Hua Xin's gross margin is at the forefront of the industry. In addition, what attracted him the most was Hua Xin's 21% stake in Hua Bang Electric (2344).

Xie Fuxu pointed out that Hua Bang Electric's first-quarter after-tax net profit reached 10.114 billion yuan, and it is estimated that this year's after-tax net profit will reach at least 70 billion yuan. Hua Xin, which holds a 21% stake in Hua Bang Electric, may recognize investment income of 14 to 15 billion yuan this year. Therefore, Hua Bang Electric alone contributes 3.5 yuan to Hua Xin's earnings per share (EPS); Hua Xin's main business may also make a profit of 3 to 4 billion yuan this year, and he speculates that Hua Xin's EPS this year may reach more than 4 yuan.

Xie Fuxu mentioned that this quarter he increased cash-like positions such as bond-type index stock funds and non-investment-grade bond ETFs, and on the 22nd, he sold the Jiemin-KY (6525) stock he held. The industry cycle of power components is not as fast as DRAM. After experiencing three years of decline, the power component industry has been "Bottom-Up" since the second half of 2025 and has not yet been a year. Therefore, the power component industry still has at least two years of good times. Related individual stocks are bound to fluctuate when the economic cycle rises. If Jiemin-KY falls below 130 yuan, it will be bought back.

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