08.07.2001
CD-R revenues hit historical highs

• Development: Major CD-R makers reported July revenues hit historical highs, above our projections.

• Analysis: We believe the upward swing in CD-R prices has come to an end for now, which may pressure CD-R companies’ profit targets. Contributions from other disk products, such as DVDs, will likely become a material source of profits for this sector in 2002.

• Primasia View: We maintain our recommendation on Ritek with BVPS estimated at NT$38 and a target of NT$67, or 20x forecast ’02 EPS of NT$3.33.