11.09.2001
Still good value

• Delta reported consolidated Oct. revenue of NT$3.3bn, up a slight 1% MoM but down 35% YoY. Results are around the lower end of our expectations. Firm expects gross margin to be maintained at 20% with revenue growing to NT$3.6-4bn on the back of increased orders for power supplies. Cumulative revenue hit NT$35.5bn, a drop of 14% YoY and achieving 78% of our full year forecast. We believe the company’s move to high margin products can improve profitability in the long run. Expectations for revenue growth in 4Q coupled with a low earnings multiple makes for an attractive valuation.