06.07.2001
Amtran's LCD monitor shipments hit record high in May

• Amtran (5405 'Rui Xuan') announced that LCD monitor shipments in May hit 58k units, a record high. The shipment increase received a boost from new orders by an undisclosed large US PC maker. Preliminary sales in May were over NT$900m, versus NT$845m in April. Meanwhile, gross margin is expected to improve to 8.5% in 2Q01 up from 7.9% in 1Q01 on the back of a favorable product mix and NT dollar depreciation. The firm began shipping their new 17inch LCD monitors in May.

• Amtram expects this month's LCD monitor output to maintain the level achieved in May. Total LCD monitor shipments are estimated to approach 250k units, exceeding 240k units for the whole of last year.

• VB Primasia Investment Opinion: We forecast Amtran LCD monitor shipment volume to be above 470k units ending 2001. As growth momentum continues, we will stick with our ACCUMULATE rating on Amtran stock supported by a lower current P/E ratio of 13x on our EPS estimate of NT$3.47 for 2001.

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