02.06.2001
Mosel pre-tax expected to hit NT$10b

• Mosel Vitelic (2342 'Mao Xi') gave guidance for its 2001 financial outlook yesterday, during the company's press conference held for the release of its new DDR product. Mosel expects 2001 revenue of NT$24b, with pre-tax profit of NT$10b, to yield a pre-tax EPS of NT$3.

• The company bases its bullish guidance on both the NT$20b revenue contributed by ProMOS's (5387 'Mao De') SDRAM and DDR DRAM production, and on the NT$4b contributed by its own 6-inch fab's LCD driver IC SRAM and niche DRAM production. The guidance also includes projected gains arising from the sale of ProMOS shares in the coming ProMOS GDR issuance, and of ChipMOS shares during that company's Mar. 2001 Nasdaq IPO.

• The company has adopted 128MB SDRAM ASP in the US$5-6 range, and 128 DDR DRAM ASP in the US$8-10 range. We believe that these DRAM pricing assumptions are fair and in line with the current market consensus.

• We believe that Mosel's guidance is vulnerable to concerns such as the deteriorating macroeconomic climate, the DRAM bit supply surplus and the ramping up of DDR DRAM demand in 2H01. These factors may lead to further revenue and profit downside.

LindaLiu@Primasia.com +886-[0]2-2547-8867