10.17.2001
Set to reap benefits of Lebyte’s China expansion

• Lebyte, a holding company of Giga-Byte and Legend (China), announced a decision to expand capacity in China to over 50% (around 500k MB units per month). Coupled with local capacity, we estimate total capacity can reach 1.5-2m MB units per month by 2002. If expansion proceeds, Giga-Byte's sales will likely be driven by gains in market share, as Legend is a well-known Chinese brand name. Thus, we believe firm's gross margin will reach 16-18% due to increased shipment.