10.19.2001
ACM looking at dismal 3Q results

• ACM will likely report very poor results in 3Q (profit will be around NT$27m, down 96% QoQ), despite improvements in operating income. While we expect ACM to report investment losses of NT$450m, firm only divested about 5,500 contracts of its TCC (4901.TT) shares with income of near NT$190m, short of our NT$500m expectation. ACM states 4Q revenue will better 3Q figures as handset and LCD monitor shipments are on the rise. We believe bottom line in 4Q will depend on stock divestment, as firm may incur investment losses of NT$400m in 4Q. Firm is likely to revise down its 2001 forecast soon thus we suggest caution on the shares’ short-term performance.