03.06.2001
EPS not the whole picture

• Most listed securities companies have announced after-tax EPS results for January and February. Concord Securities (6016 'Kang He Zheng') and Yung Chong Securities (6009 'Yung Chang Zheng') performed well, coming in first and third places, respectively.

• Concord booked a high after-tax EPS of NT$0.62, Taiwan Securities (6010 'Tai Zheng Zheng') of NT$0.56, Yung Chong NT$0.537 and Master Link (6006 'Yuan Fu Zheng') NT$0.53

• The top three EPS scorers use the monthly accounting period to report earnings. The write-back for provisions for investment losses from proprietary trading and underwriting will make net profits appear higher than for those companies which report on quarterly accounts.

• Although companies using the monthly accounting period show better short-term earnings results, we are concerned over future earnings fluctuations, especially in market downturn. Quarterly reporting smoothes out fluctuations and makes results and stock price performance more predictable.
  ** Note: January 2001 is a short working month due to the long Chinese New Year holiday

WilliamFong@Primasia.com +886-[0]2-2547-8864