08.27.2001
Delta 1H results in line, margin improving

• Development: Delta posted 1H01 net profit of NT$2.4bn and EPS of NT$2.02, up 9% YoY. Bottom line figures are in line with our estimates.

• Analysis: Delta’s gross margin improved in 2Q to 19.2% from 18.0% in 1Q. Firm expects 2H revenue to reach close to 1H01’s level. Delta claims to be sole provider for Dell’s networking product orders.

• Primasia View: As Delta’s 1H01 pretax target is 45% to ‘01 target of NT$6bn, we believe firm is unlikely to revise down its earnings forecast. Thus, we maintain our current rating on this counter.