Has Yageo Contracted the 'Only Downward Disease'? Earnings Call Today May Turn into a Funeral — Experts Reveal 3 Problems: A Nightmare for Investors

Yageo (2327), a major passive components manufacturer, plunged again on the 29th, opening at 539 TWD and briefly rising to 545 TWD before falling sharply. By mid-morning, it hit the daily lower limit at 507 TWD, marking its second consecutive day of steep losses. Investor anxiety is rising as the company prepares for its afternoon earnings call. Despite expectations of solid financial results, persistent selling pressure suggests that even positive earnings may fail to restore market confidence if supply-demand imbalances persist.

Financial expert Yeh Yushuo posted on Facebook, noting that Yageo’s situation differs from the recent memory chip sector. "Will today’s afternoon event be an earnings call or a funeral?" he asked sarcastically, suggesting Yageo appears to have contracted a 'disease of only falling.' The stock, which traded at 1,220 TWD on July 1, dropped to a low of 508 TWD during intraday trading on the 29th. In less than a month, over 58% of its value evaporated. "This isn’t boiling a frog in warm water—it’s boiling it in hot water," Yeh remarked, emphasizing the relentless, near-rebound-free decline that has steadily eroded investor hope.

Yeh highlighted that such a continuous downtrend is particularly devastating for margin traders, calling it a 'nightmare.' He contrasted Yageo’s situation with the memory sector, which has benefited from new growth narratives like HBM, AI servers, and high-bandwidth memory, allowing markets to price in future growth. In contrast, passive components are cyclical, and real demand recovery, inventory digestion, and AI’s tangible contributions remain unproven and require time to validate.

Yeh stressed that beyond Q2 earnings, the market will closely watch management’s outlook on second-half demand, AI applications, automotive markets, and future guidance. However, recent trends show that even strong earnings reports have failed to lift stock prices, raising doubts over whether today’s event will be an 'earnings call' or a 'funeral.'

Additional reports from Feng Media include:

- An investor who spent over 500 million TWD to buy 432 shares of Yageo now faces massive losses. Known as the 'property tycoon stock god,' he’s trapped at the 1,000 TWD peak, with many retail investors joking, 'At least I’m not alone.' - Has Yageo’s stock hit bottom after a 50% drop? A recent event has revived fears of the 'chairlady selling shares' scandal, with experts warning one key data point: history may repeat itself. - Can investors buy Yageo after a 40% plunge? Experts predict a second major rally: wait for 'this line' before re-entering the market.