01.29.2001
LCD monitor to be growth driver

• Amtran Tech (5405 Rui Xuan) expects 2001 sales of NT$12b, 20% growth YoY. The increased sales will reflect rises of LCD monitor shipment, estimated at around 500k this year compared to 240k last year. CRT monitor output will remain at the 2000 level of around 500k.

• The company forecasts 2001 pretax profit of NT$600m, compared with NT$627m in 2000. To keep gross margin at 8.5%, Amtran's product-mix strategy is focused on large-size monitors, by raising shipment 17inch-plus LCD monitor and 21 inch (plus) CRT monitor.

• Our forecast is conservative on monitor profitability due to a slowdown in PC growth and to higher inventory levels.

• We expect gross margin and pretax profit of about 8% and NT$575m, respectively.

MarthaChen@Primasia.com +886-[0]2-2547-8878