06.21.2001
Investment gains supporting Sunplus results

• Development: Sunplus (2401 ‘Ling Yang’) indicated it will likely miss 2Q01 revenue and gross margin targets of NT$1.67bn and 42%, respectively. However, an exchange gain of NT$100m was recognized in May, which can act as buffer to bottom line.

• Analysis: Our forecast remains unchanged, although we see further weakness in consumer sentiment as a threat to near term performance. Meanwhile, the company's strategic investments should provide sufficient relief.

• Primasia View: Given strong underlying fundamentals in core business and investments, we remain confident in company’s medium to long-term outlook.

AngelLo@Primasia.com +886-[0]2-2547-8865