03.22.2001
Quanta and Compal see further upward momentum on shipment

• Quanta (2382 'Guang Da') and Compal (2324 'Ren Bao') see March shipment climbing to around 300k and 150k, respectively, reflecting 25% and 15% MoM growth. Dell orders are a big contributor to this growth. These results are in line with our previous forecasts. We reiterate ACCUMULATE these counters.

• Quanta held an opening ceremony for its new Shanghai plant yesterday. The local media there reported initial investment in the plant amounted to US$200m (Quanta denies this), and that it would realize shipment of 1m NB PC this year...

• Quanta actually kicked off motherboard production at the plant on March 1, shipping back to Taiwan for final assembly. At present, the Taiwan government does not permit NB PC manufacturing in China.

• Initial investment in the Shanghai facilities, as approved by the government here, was US$26m. Quanta has indicated it is considering increasing investment in China. We believe more investment will be forthcoming, and expect the Shanghai plant to become a major NB PC production facility for the Quanta group.

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