Sinopac Financial Holdings: Rights issue with limited dilution, good buying opportunity if S-T hiccup in share price

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Sinopac Financial Holdings: Rights issue with limited dilution, good buying opportunity if S-T hiccup in share price

J P M O R G A N Asia Pacific Equity Research

28 June 2026

Sinopac Financial Holdings Overweight

2890.TW, 2890 TT

Rights issue with limited dilution, good buying Price (26 Jun 26):NT$39.15

opportunity if S-T hiccup in share price Price Target (Dec-26):NT$41.40

Sinopac on Friday evening announced a rights issue mainly to support organic Asia Financials

ACbusiness expansion in the securities operations. We believe there could be near- Jemmy S Huang

term share price weakness along with the market correction in the near term. (886-2) 2725-9870

However, we believe this would be a good buying opportunity as we expect limited jemmy.s.huang@jpmorgan.com

EPS dilution and only low- to mid-single-digit ROE dilution, while there is no J.P.MorganMorganSecuritiesSecurities(Asia(Taiwan)Pacific) Limited/Limited/ J.P.J.P.

change in FHC's dividend policy and our expectation of superior dividend yields. Morgan Broking (Hong Kong) Limited

Amanda Chang

• Details of the proposed rights issue. Sinopac announced a rights issue of up (886-2) 2725-9861

to 760m new common shares with a tentative issuing price of between NT amanda.chang@jpmorgan.com

$26.6-50. The targeted fundraising size is NT$20bn, of which NT$12.5bn J.P. Morgan Securities (Taiwan) Limited

would be injected into Sinopac Sec, which is currently facing tighter regulatory Katherine Lei

constraints of debt/equity of up to 6x but also decent demands on margin (852) 2800-8552

financing and unrestricted-purpose lending and a promising outlook for new katherine.lei@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.