07.31.2001
Compal and Quanta seeing more Dell orders

• Development: Quanta and Compal continue to benefit from Dell orders of new model notebook PCs in 2H01. Quanta anticipates monthly sales for 3Q01 to reach a high of NT$10bn, while Compal expects to book record sales of NT$7bn in 3Q01.

• Analysis: Compal will ship two new models for Dell in Aug. and Sept. We expect sales to accelerate thru 3Q01. We forecast a 35% QoQ revenue increase for Compal on back of increased shipments for notebook PCs and IA.

• Primasia View: As top performers in Taiwan’s notebook PC sector, both companies benefit from highly visible growth, which suggests further stock price outperformance in the months ahead.