09.11.2001
Askey bags nice results on broadband trend

• Development: Askey reported August revenues of NT$1.26bn, the second highest monthly revenues for the company. Firm estimates that August pretax earnings will come in around NT$70m.

• Analysis: Continuing to benefit from the broadband trend, Askey will likely maintain high revenue levels throughout the remainder of the year. However, we are concerned with low client concentration for the firm (ie, ADSL modems for Sumitomo and cable modems for SA).

• Primasia View: The stock currently trades at P/E of 22x with EPS of NT$0.97. We consider this valuation rather high in light of poor economic conditions.