01.08.2001
MITAC records 56% revenues growth

MITAC International (2315 ‘Shen Da’) 2000 sales jumped 55.8% YoY to be NT$47.1b, boosted by increasing revenues from servers and work-stations, and despite Dec. sales falling 27% MoM to NT$3.5b. The company predicts it will raise ratios of server and work-station sales to 35% this year, from 25% in 2000. We previously forecasted 2000 profit growth at 15%, a figure well below sales growth, reflecting a gross margin slide to 7.3% in 2000 from 9.2% in 1999. Our EPS for 2000 was NT$2.23, and we maintain Hold.
Martha Chen