10.25.2001
Bullish on NB PC shipment growth

• Compal has reiterated a positive outlook on NB PC shipments, forecasting 800k units for 4Q01 (48% growth QoQ) and 3.5m units for 2002 (54% growth YoY). Firm’s optimism is primarily driven by increased orders from Dell and HP. Firm expects Oct. NB shipments to reach 270k-300k, and Nov. shipments are likely to mark a record high. Despite 4Q01’s NB PC shipments beating our estimation, we maintain our ‘01 EPS forecast of NT$2.79 due to lower than expected NB PC ASP. Backed by underlying growth trend and the attractive valuation, we are sticking to our rating.