06.15.2001
Wintek approved for China investment

• Development: Wintek (2384 ‘Sheng Hua’) has gained approval from Taiwan government to invest STN-LCD back-processing production and LCD module assembly in Suzhou.

• Analysis: The firm expects trial production by end 2001. We expect that Wintek will lower its production costs and eventually access the mainland’s market.

• Primasia view: Coming GDR issue and disappointing monthly revenue growth will impact stock trading in the short term. Moreover, the current stock price is overvalued due to inflated caused handset inventories.

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