06.19.2001
Dreary outlook for Wintek

• Development: Wintek reported pretax profit for May at NT$ 4.8m, while the pretax earnings for the first five months reached NT$12.5m (EPS of NT$ 0.04).

• Analysis: Lower utilization in the first five months of this year produced a gross margin of 18%, a decline from the 25.5% GM reported in the same period of 2000.

• Primasia View: Monthly revenue is expected to see modest growth but we expect Wintek to revise down profit forecasts in 2H01 and still believe the stock price is overvalued.

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