08.29.2001
Ritek 1H01 EPS down 70% YoY

• Development: Ritek’s board met to discuss 1H01 financial results of NT$1.12 EPS and NT$1.4bn net profit, a 70% decline YoY.

• Analysis: With nearly 50% 1H01 net profits generated from non-operating profits, this represented only 28% of firm’s NT$5.0bn 2001 target. Our revised forecast reflects the poor performance and indicates concerns on high AR days O/S.

• Primasia View: We believe Ritek’s shares will likely flatten before CD-R prices soften and AR concerns improve.