07.12.2001
Faraday warns it may miss 2001 target

• Development: Faraday disclosed interim financials and reported its 2H01 outlook yesterday. Revenue for 1H01 posted a disappointing NT$1.13bn & PAT of NT$284m, representing an EPS of NT$3.28. Gross margin dropped 3% to 48% in 2Q01.

• Analysis: Revenues and PAT account for only 37% of Faraday’s full year forecast, which is likely to be missed. Further, we do not anticipate any demand pick up from its customers in the near term.

• Primasia View: We believe Faraday's indication of a possible shortfall for 2001 financials will pressure short-term share price. We maintain our view that the company is overvalued.

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