08.31.2001
Far Eastern Textile laboring under current slump

• Development: Far Eastern Textile announced disappointing 1H01 results. Revenue reached NT$16bn, 48% of company’s FY01 target. Operating income reached NT$4m, non-operating income posted NT$1.3bn, and net income amounted to NT$362m with EPS of NT$0.11, all lower than expected.

• Analysis: Global economic depression pushed down operating income, however results in 2H01 are expected to be better due to cutbacks in money losing units. In 1H01 non-operating income was influenced by lower than expected earnings contributions from both Far EasTone Telecommunication (unlisted) and Oriental Securities (unlisted).

• Primasia View: We expect improved earnings in 2H01, which leads us to maintain our current rating.