08.28.2001
Ritek preferred player in saturated CD-R sector

• Development: Japanese and Indian CD-R makers will aggressively compete for low price orders posing a threat to local Taiwan manufacturers.

• Analysis: CD-R market is experiencing unsustainable demand pickup, and in response we have issued price alerts. Competition from Japan and India combined with new comers from China are underlying concerns on current pricing trend.

• Primasia View: Aside from our conservative view on CD-R, we believe high accounts receivable in Taiwan manufacturers will pressure financial conditions. However, we favor Ritek in troubled CD-R sector, as new product (Personal Storage Media) should be successful in 2002.