10.12.2001
ACM's CDMA handset in the pipeline

• According to the local press, ACM has begun to prepare components for its new CDMA handsets. Firm will initially focus on Central African and Chinese markets with shipment expected to begin in Oct. We understand that revenue contribution from CDMA handsets is limited for 2001, but we believe the potential is tremendous, as CDMA is gaining popularity in China. Although we remain concerned about the company’s dependence on PC related products (over 50% of total revenue) and possible downward earnings revisions, we maintain our Trading Buy recommendation with a short-term target price of NT$31.80 based on expectations of increased shipments for GSM handsets and LCD monitors in 4Q01.