10.05.2001
Yuanta posts uninspiring results

• Yuanta Securities announced Sept. loss of NT$741m. The company booked unrealized loss of NT$365m for proprietary trading and NT$361m for underwriting in 3Q01. Accumulated net profit for the three quarters is only NT$1.8bn. Yuanta has cut full-year forecast to NT$2.9bn from NT$6.5bn. Although we do not expect earnings to pick up this year, we maintain our Accumulate recommendation due to the low P/B of 0.7x and because Yuanta has the largest share of Taiwan’s brokerage market, making it an attractive alliance play for large financial institutions interested in expanding their securities arm.