09.24.2001
Compal repurchases 5% of total shares

• Development: Compal’s management has decided to repurchase 103.92m shares (5% of total) in the price range of NT$17.78 to NT$50.14. Firm reveals Sept. revenues may hit record high due to increased notebook PC and LCD monitor shipments. Compal reports orders from major customers have not yet been revised down, and indicates the addition of another top notebook PC vendor to its customer lists with shipments to begin in Oct.

• Analysis: Compal’s notebook PC shipment growth in 2H01 will likely rely on Dell’s two new notebook models. Concerns over deferred corporate IT spending and weakening consumer confidence after the US terrorist event lead us to reduce our ’01 EPS forecast by 4% and ‘02 EPS forecast by 6%.

• Primasia View: We maintain Outperform as Compal continues to impress with sound financials and attractive valuation.