05.21.2001
Handset shipment in April still lolling in the doldrums

• Handset shipment had a poor month in April. ACM (2352 'Ming Dian') topped the shipment league with 410k units, down some 31% from 600k in March. GVC (2322 'Zhi Fu') shipped less than 150k pieces, similar to the 100-150k in the previous month. Compal (2324 'Ren Bao') subsidiary 'Hwa Bao' saw shipment rise to 70-80k units from 65k in March.

• Despite the discouraging figures, the major players expect to see increased shipment in 2Q01 over 1Q01. ACM expects handset shipment to come in between 400-500k units in May and June. We expect stronger shipment in 2H01 and forecast that ACM will ship around 5.5m units in 2001. GVC claims demand from China is still showing strength. The company predicts shipment of over 150k units in May. Hwa Bao said its component shortage problem should be resolved in May, and expects to ship over 100k units this month.

• VB Primasia Investment Opinion: We are conservative on the handset market in 2001 as demand from the upgrading market continues weak and GPRS infrastructure remains far from complete. We recommend HOLD ACM.

BennyLo@Primasia.com +886-[0]2-2547-8869