03.22.2001
D-Link proving an all-round solid performer

• D-Link's (2332 'You Xun') investments in other companies are starting to see returns. The company expects such investments to contribute 30% of total 2001 revenue.

• D-Link indicated that businesses in North America, Europe and Asia are growing in 1Q01, particularly OBM.

• D-Link's current success in North America lies with its marketing strategy. The company focuses on the SOHO / small and medium enterprises markets, which are weathering the general slowdown in the communication equipment market relatively well.

• As for outsourcing, D-Link claims it has obtained many contracts from Japan, particularly for high-margin switches. We expect benefits to become apparent in 2Q01.

• We maintain our recent ACCUMULATE recommendation on D-Link, with a target price of NT$60, or P/E of 25x.

BennyLo@Primasia.com +886-[0]2-25478869