02.14.2001
Loop Telecom goes up-limit for 9th day in a row

• Loop Telecom (4902 'Xing Tong'), a local access equipment manufacturer, has seen its share price rise to the upper daily limit of 7% nine days in a row since listing on the Taisdaq on February 1. Loop reported January revenues of NT$24.8m, 228% growth YoY. The strong result comes primarily on the back of a NT$0.47b order received last year from KG Telecom (unlisted) for a Channel Service Unit (CSU)/Data Service Unit (DSU) equipment order.. We expect 2001 revenue to clock up around NT$750m for EPS of NT$5.41. Loop benefits from limited competition, strong research and a high profit margin. A remaining concern is the company's low ratio of shares outstanding at only 10%, making it difficult for institutional investors to make Loop part of their investment portfolio.

BennyLo@Primasia.com +886-[0]2-2547-8869