09.26.2001
Ambit ADSL shipments exceed expectations

• Development: Up to Sept., Ambit indicates ADSL shipments have already achieved firm’s original full-year forecast of nearly 2m units. The second half of the Chunghwa Telecom (2412.TT) contract begins shipment in Oct. and shipment to Yahoo Japan is expected to continue in 4Q01. Ambit is anticipating total ADSL shipments to reach 2.5m - 3m in 2001.

• Analysis: Our model suggests total ADSL shipments of 2.37m in 2001. We have adopted a conservative approach for Yahoo Japan shipments, as company is a new hand on ADSL services in Japan.

• Primasia View: Overall, we are confident that Ambit can achieve our earnings forecast of NT$17.45bn, or EPS of NT$6.28.