11.02.2001
Bags new PDA order from Apple

• Reports suggest Inventec's wholly-owned subsidiary, Inventec Appliance, has won a PDA (i-Pod) order from Apple. Expected to begin in 4Q01, total shipments may reach 600k. Inventec is remoulding its business model from one with reliance on a single customer (Compaq) to one with a diversified customer base. Market suggests firm has won over a second NB PC customer, Toshiba, and expects shipments to start from ‘02. EPS in the first three months hit NT$1.67 (11% YoY growth), helped by increased non-operating income. We consider the diversification policy, inexpensive valuation and solid balance sheet as positives for the firm's stock price, which is under review for possible upgrade.