06.11.2001
Asustek dawdling in weak sector

• Asustek (2357 'Hua Shuo') reported May revenue of NT$5.0b, a 20% decline MoM. The backslide is due to seasonal slowdown in the MB and NB sectors, which saw a respective 20% and 40% drop in monthly shipment last month. Interface Cards maintained the same level as April.

• VB Primasia Investment Opinion: We remain positive on Asustek's earnings prospects. Besides a sound outlook for 3Q01 outsourcing orders and lower motherboard costs, we believe Asustek's new P4 motherboard will beat the market in 2H01, especially with Intel’s marketing push.

JesseLin@Primasia.com +886-[0]2-2547-8871