08.08.2001
Accton reports impressive 1H01 results

• Development: Accton reported 1H01 EBT of NT$746m (vs our forecast of NT$600m) with gross profit margin improving from 19.5% in 1Q01 to 21.5% (vs 17.4% in our model) in 2Q01. Pretax margin improved to 10.8% in 2Q01 from 5.8% in 1Q01.

• Analysis: Improvements in gross profit margin indicate better product mix, falling component prices and better operational efficiency. EBT margin increase is likely due to FX gain of NT$100m, enough to compensate for losses in firm’s subsidiaries.

• Primasia View: We hold a conservative estimation for 3Q revenue of NT$4.2bn, but remain confident that company will meet our FY01 revenue forecast of NT$17.7bn.