Buy Yageo, Reborn in Gathering? Send Chuan Hsu to Cihu? Hsieh Jin-He Reveals Market's Extreme Fear: Half-Year Reports Expose 'Hype-Driven Stock Speculation'

Global capital markets have recently entered a major correction phase, led by South Korea's stock market plunging over 43% in July, followed by sharp declines in the Philadelphia Semiconductor Index and Japan's Nikkei. While Taiwan's weighted index has held up relatively well, many popular individual stocks have suffered severe corrections.

Hsieh Jin-He, chairman of CommonWealth Magazine, pointed out on Facebook that self-deprecating internet memes like 'Buy Yageo, be reborn in gathering; Buy Chuan Hsu, be sent to Cihu' reflect extreme market fear. With Q2 earnings and first-half financial reports rolling out in August, this period will serve as a crucial health check to distinguish fundamentally sound companies from those driven by hype.

Hsieh noted that while Taiwan's overall index dropped about 18.3%, many individual stocks have seen 'hell-level' declines. For example, fiberglass fabric maker Dehong plunged 75%, while former passive component giants like Yageo, Walsin, and Holtek saw their share prices fall over 60% from peak levels.

Investor pessimism has spread to social media platforms like Threads, where a dark-humor rhyme has gone viral: 'Buy Yageo, meet in the next life; Buy Holtek, straight to the funeral hall; Buy Walsin, lose everything and end up in psychiatry; Buy Chuan Hsu, send to Cihu...' This vividly reflects the extreme psychological fear among investors.

Hsieh analyzed that after the July selloff, August brings Q2 reports, half-year results, and July revenue data, shifting focus back to fundamentals. Chuan Hsu, the server rail manufacturer mocked in the rhyme, reported a stellar Q2 EPS of NT$74.38 and cumulative H1 EPS of NT$110.96, supporting its share price surge to NT$11,110, making it Taiwan's third 'NT$10,000 stock'. In contrast, Yageo, with an estimated EPS of around NT$20, was previously traded at NT$1,220, pushing its P/E ratio above 60—overvaluation inevitably led to a sharp correction.

Despite the fear, Hsieh emphasized that Taiwan's real economy and corporate fundamentals remain strong. July exports hit USD 75.3 billion, the third-highest on record. From January to July, Taiwan's exports to the U.S. reached USD 156.65 billion, with a surplus of USD 122.46 billion, far exceeding market expectations.

On the corporate earnings front, Hon Hai's July revenue surged to NT$946.5 billion, signaling a potential full-year revenue breakthrough of NT$10 trillion. Memory firms like Innodisk, ADATA, Transcend, and Team Group, along with Nanya Technology, which earned NT$50.19 billion in a single quarter, saw explosive profit growth. Server giant Wiwynn posted H1 EPS of NT$156.38, while copper-clad laminate maker Taiming Electronic achieved H1 EPS of NT$42.46.

Hsieh stressed that export data and listed companies' revenues and profits are closely linked. The coming week is the best time for investors to thoroughly review their portfolios. Whether a company has genuine value or is merely hyped will ultimately be revealed by its stock price: 'In the end, the market will give the most truthful answer!'

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