05.08.2001
Compal NB PC shipment rebounding in April

• Compal (2324 'Ren Bao') reported preliminary April revenue of NT$5.98b, up 9% MoM. The revenue growth comes mainly on the back of increased NB PC shipment. Shipment in April rose to 165k units from 135k in March, boosted by delivery of new NB PC models to Dell. Sales growth is lagging NB PC shipment growth because of increased barebone shipment to Dell.

• Compal predicts NB PC shipment will climb to over 500k units in 2Q01, versus 385k units in 1Q01. Meanwhile, LCD monitor output is expected to increase by 220k units. LCD monitor output in April rose to 60k, compared to average monthly shipment of 40k units in 1Q01.

• Compal has reiterated it will not incur any expense as a result of Dell's recent recall of its NB PC battery.

• VB Primasia Investment opinion: We retain our ACCUMULATE rating on Compal on the strength of growing revenue and overall healthy finances. Current P/E ratio is 13x-14x our fully-diluted 2001 EPS forecast. The company went ex-dividend yesterday.

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