07.04.2001
Expected improvements from Cheng Uei

• Development: Cheng Uei Precision reported June revenue at around NT$450m, the highest monthly level attained this year. The firm expects this figure to grow further in 2H01.

• Analysis: We agree with the company’s expectation as they have secured an order from Microsoft for X-Box connectors and cable assemblies.

• Primasia View: While the company trades at a P/E of 24x, we suggest a good entry point to be below NT$80 with a target price of NT$90-95.

BennyLo@Primasia.com +886-[0]2-2547-8869