09.04.2001
ACM prospects looking up in 2H01

• Development: ACM reported 1H01 revenue of NT$22.9bn (NT$22.8bn in 2000), with net income of NT$1.0bn (down 38%). ACM admits it is supplying DVD-ROM for Microsoft’s X-Box.

• Analysis: The results are in line with our revised forecast. Gross profit margin improved to 13% in 2Q01 from 12% in 1Q01, mainly on increased shipment of LCD monitors and handsets. While ACM divested stock holdings of around NT$1.0bn in 1H01, it booked investment loss of NT$614m, mainly on AU Optronics (2409).

• Primasia View: Company should see higher LCD monitor and handset shipments in 2H01. But we note that most of the company’s products are PC related.