Fuxing announced its 4QFY10 results on 1 Mar 11, after trading hours. Despite a good set of results, Fuxing has slid 12% from $0.170 on 1 Mar 11 to $0.150 on 11 Mar 11 on lower than average volumes (except for one day – 7 Mar 11). So what constitutes the fall in the share price?
Some potential “reasons” to the drop in share price
Besides the poor market sentiment relating to S chips (especially after the audit issues on China Hongxing and Hongwei etc), I shall hazard some guesses to the reasons why there is a drop in Fuxing’s share price.
Firstly, Fuxing has reduced its target dividend payout ratio from not less than 40% to not less than 25% in FY11 and beyond. This may affect some investors who have previously bought Fuxing potentially for high expected dividend yields. I have put in a table to ...
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