07.12.2001
MTI still attractive in spite of recent run-up

• Development: Wireless equipment maker (base stations; broadband; satellite communications) sees NT$1.1bn revenue in Q2, but with Q3 revenue bolstered by increased outsourcing orders (Lucent) and new product launch (Mini VSAT).

• Analysis: Near term pressures from US and Europe markets aside, company’s competitive advantage remains intact, including high entry barriers and unique business franchise that supports continued outsourcing from global heavyweights.

• Primasia View: Near term revenue expectations may be too optimistic, but valuation compelling with PER below 20 times, which is very attractive for wireless plays.

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