06.21.2001
Compeq sees margin expansion

• Development: Compeq (2313 'Hua Tong') announced 2Q01 revenue to come in around NT$4.0bn, a 2% decline QoQ but with profit margin expanding by 3% (QoQ). Compeq remains confident in reaching its 1H01 earnings target of NT$3.3bn.

• Analysis: Depreciation of NT dollar coupled with lower PCB material price is helping Compeq offset sluggish top line performance in 2Q01.

• Primasia View: Overall outlook for communications segment is poor, which is keeping Compeq focused on PC-related segment. New Flip-Chip substrate is expected to be approved by Intel for P4 CPU’s by 3Q01.

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