10.26.2001
Upbeat on handset prospects

• Thanks to the popularity of Motorola's T191 model and increasing demand for its branded handset, ACM claims that handset shipments could be over 800k in Oct. and reach 900k in Nov. We anticipate around 2.5m handsets to be shipped in 4Q, compared to 2.2m as per original guideline. We believe company's yearly target of 6m is achievable (our forecast is 5.5m units). Together with expected rising LCD monitor shipments and declining losses from AU Optronics (2409.TT) going forward, we estimate net profit to come in around NT$600m (assuming no share divestment) in 4Q, up from our forecast of around (negative) NT$-100m in 3Q. We maintain our recommendation given the company’s improving business outlook.