06.19.2001
Ritek plans capacity expansion in China

• Development: CD-R maker Ritek (2349 ‘Lai De’) is expanding capacity in China for portable storage media (compact flash card and data play), and DWDM thin-film-filter.

• Analysis: We believe revenue from these products will grow 300% and 200%, respectively, in 2002. Ritek’s move will increase cost competitiveness and improve access to the domestic China market.

• Primasia view: Ritek’s share currently trades at 18x and 11x our 2001 estimation (NT$3.90) and 2002 EPS forecast (NT$6.50), respectfully. The expansion into China reaffirms our positive view on Ritek.

Vincent@Primasia.com +886-[0]2-2547-8868