07.25.2001
Cheng Uei shipments on track

• Development: Recent rumor suggests launch of Microsoft’s X-Box may be postponed. Although Microsoft reiterated an original launch date of Nov. in U.S., the company is less certain about a release date in Japan.

• Analysis: As an outsourcing partner for the X-Box peripheral, Cheng Uei has reported that shipment will proceed as originally scheduled. We continue to hold our conservative assumption that revenue of NT$600k will be generated from X-Box business in 2001.

• Primasia View: Cheng Uei currently trades at a P/E of 20X (est. EPS 2001) and we recommend Trading Buy based on high visibility of orders.