05.09.2001
Wintek April sales see a monthly rise, but a yearly decline

• STN-LCD (Super Twisted Nematic Liquid Crystal Display) maker Wintek (2384 'Sheng Hua') booked revenue of NT$427.8m in April, for 11.8% MoM growth but a 33% decline YoY. Year-to-April revenue fell 27% compared to the same period last year due to global handset inventory correction.

• The April revenue figure is in line with our expectations. We predict 2Q01 revenue will rise 19% QoQ, but fall 22% YoY.

• VB Primasia Investment Opinion: We believe Wintek's falling share price has already factored in disappointing 1Q01 results (EPS of NT$0.02) and a negative earnings outlook for full-year 2001. However, we still see the current market price, with a P/E of 35x based on our adjusted 2001 EPS forecast, as OVERVALUED.