PRE-MARKET TAIWAN AND SINGAPORE STOCKS NEWS: United Microelectronics (2303 TT) - FY (TWD) Net 41.7bln (prev. 47.2bln Y/Y), conducts TWD 1.6bln of machinery purchases from ASML Singapore.

TAIWAN

Lite-On Technology Corp. (2301 TT) - Co. Q4 (TWD) net profit fell 16.89% Q/Q but rose 26.6% Y/Y to 3.86bln, revenue rose 16% Y/Y to 44.36bln, sees Q1 rev. to grow Q/Q and Y/Y. (Taipei Times)

United Microelectronics (2303 TT) - FY (TWD) Net 41.7bln (prev. 47.2bln Y/Y), conducts TWD 1.6bln of machinery purchases from ASML Singapore. (Newswires)

SINGAPORE

Oversea-Chinese Banking Corp. (OCBC SP) - Co. favours special dividends over buybacks for excess capital, according to new CEO. (Business Times)

Seatrium Ltd (SMM SP) - Co. H2 (SGD) net profit rose 48.3% Y/Y to 179.3mln, revenue rose 17% Y/Y to 6.1bln, FY net profit rose 106% Y/Y to 323.6mln, FY revenue rose 24.3% Y/Y to 11.5bln. (Business Times)

Context

United Microelectronics reported a year-over-year decline in FY net profit, dropping from TWD 47.2 billion to TWD 41.7 billion, which indicates potential weaknesses in its earnings momentum. The planned TWD 1.6 billion machinery purchases from ASML could suggest a strategy to enhance production capacity or technology, but investors may be wary of the profit decline impacting future growth prospects. Overall, this might lead to cautious sentiment towards UMC's stock, especially in the semiconductor sector amid mixed earnings reports from peers.

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