Taiwan Today

Shares of Taiwan-based Chinese Gamer International Corp. were the top performer on the local bourse July 14 following reports that Chinese officials are expected to grant Taiwan online games on the mainland the same treatment as their local counterparts later this year. The company’s stock closed at NT$460 (US$13.9) per share in the domestic bourse, ahead of shares of smart phone maker HTC Corp., Formosa International Hotels Corp., leading camera phone lens maker Largan Precision Co. Ltd., and the country’s biggest integrated circuits design house MediaTek Inc. Taiwan’s online gaming companies do not seem to have been negatively affected by the global financial tsunami since the latter half of last year. In fact, the resultant rising unemployment and burgeoning “stay-at-home” economy have helped boost business and share prices in this sector. Currently, four of the six leading stocks traded on the GreTai Securities Market, previously called the over-the-counter market, are those of online gaming firms, including Chinese Gamer International Corp., UserJoy Technology Co. Ltd., International Games System Co. Ltd. and Soft-World International Corp., which ranked first, second, third and sixth, respectively. Chinese Gamer International shares have nearly quadrupled in value from just over NT$100 posted in February. The company’s first-quarter revenues registered growth of 83 percent over the same period a year earlier, with net profit reaching NT$343.84 million, up 164 percent year-on-year. Revenue for the first six months of this year has already exceeded NT$900 million, marking an increase of about 80 percent over the first half of last year. Chinese Gamer International and other local gaming companies are expected to gain a further boost with Chinese authorities’ reported decision to classify Taiwan games as “domestic” as opposed to “overseas” ones from September. The new classification will mean Taiwan games will enjoy better treatment, such as shorter periods for review and certification by government officials, that will provide an advantage over other games imported from abroad. HSBC Taiwan Electronics Fund manager Alan Huang said that the third quarter is generally a boom season for online gaming companies as students spend more during their summer vacation. As a result, strong performance is anticipated in the sector over the next three months following a stronger-than-expected second quarter thanks to the boost to the “stay-at-home” economy stemming from such factors as the spread of influenza A (H1N1) as well as rising unemployment caused by the global economic downturn. (SB)