With local computer makers reporting strong growth in notebook shipments last year, analysts said industry prospects, fueled by the introduction of new products, will remain positive.
"We believe that Windows Vista, multi-core processors and emerging areas are catalysts to accelerate global PC unit growth this year, to 10.6 percent year-on-year from 9.8 percent last year, assuming the global economy remains intact," Credit Suisse said in report dated Jan. 4.
The top-five notebook contract makers in Taiwan shipped a total of 55.9 million portable computers last year, up 34 percent from 2005, Credit Suisse estimates showed.
Combined shipments in the current quarter will increase 37 percent year-on-year to 15.8 million units, it said.
Credit Suisse said Asustek Computer Inc (華碩電腦) will capitalize on growth in its own brand laptop shipments as well as on production for Apple Computer Inc's MacBook and iPod shuffle and Sony Corp's PlayStation 3 consoles.
Meanwhile, Macquarie Research Equities raised the target price of Wistron Corp (
"We raise Wistron's target price from NT$50 to NT$63. The first quarter is the best timing to accumulate Wistron's shares as we expect very strong growth from the second quarter," Macquarie said in a report released late on Monday.
Wistron's first-quarter sales are expected to fall 11 percent quarter-on-quarter, due to the traditional low season and phase-out of Dell Inc's notebook model, it said, giving an "outperform" rating to the top-tier computer maker.
However, robust growth momentum will start from the second quarter, which will see a quarterly rise of over 20 percent, driven by LCD TVs and new notebook models for Acer Inc, Hewlett-Packard Co and Lenovo Group Ltd (聯想), it said.
Wistron was recently reported to have gained orders from Hewlett-Packard and Sharp Corp, adding them to its Dell Inc and Westinghouse Digital Electronics clients.
Wistron's LCD TV revenue contribution is expected to rise to 7 percent from 1 percent last year and as a result the business should become profitable, the equities house said.
As for larger rival Compal Electronics Inc (仁寶電腦), Macquarie said its valuation was very attractive but that there were limited catalysts to drive the share price for now.
"We would suggest that investors position in the stock when there is strong evidence that the reinvestment losses from both Toppoly Optoelectronics Corp (
Compal saw its sales last month rise 76 percent from a year earlier to NT$35.9 billion (US$1.1 billion).
Its full-year sales rose 37 percent to NT$303 billion, from NT$220.9 billion in 2005.
Wistron's sales last month grew 18.7 percent from a year ago to NT$20.6 billion, whereas its whole-year revenues increased 40.9 percent to NT$218.4 billion.
Shares of both companies rose yesterday on the Taiwan Stock Exchange, with Compal closing up 0.9 percent to NT$28.75 and Wistron closing up 5.2 percent to NT$50.9.
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