While Taiwan’s first semiconductor company United Microelectronics (UMC, quote) does not have the stratospheric share price of an Apple (AAPL, quote) or a Samsung (SSNLF, quote); it nevertheless has many appealing features for emerging market growth, income, and value investors.
According to Forbes, it’s set to benefit from a shortage of manufacturing capacity for advanced processes. Business that would otherwise go to Taiwan’s number one contract chip manufacturer Taiwan Semiconductor (TSM, quote), is set to overflow to UMC.
Primasia Securities head of research Matt Cleary told Forbes that UMC “has a fantastic opportunity falling in its lap.”
UMC’s high dividend yield is also fantastic for income investors. At 7.04%, the dividend is much higher than the average dividend of an S&P 500 company
For investors seeking growth, the Taiwan-based electronics company has a bullish price-to-earnings growth ratio of 0.65.
The balance sheet is healthy. The price-to-book ratio is 0.95, which means the company sells for less than the value of its assets. The debt-to-equity ratio is modest at 0.20.
United Microelectroncs is up by 27.10% for the year, and is continuing to rise. It gained 7.09% in the last week of trading. The trend is definitely the friend for the shareholders of this company as it is trading above its 20-day, 50-day and 200-day moving averages.