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    High Tech shares jump by daily limit after profit report


    BLOOMBERG
    Wednesday, Jan 09, 2008, Page 11

    High Tech Computer Corp (HTC, 宏達電), the world's largest maker of handsets using Microsoft Corp's Windows operating system, jumped by the daily limit in Taipei trading yesterday after reporting profits that exceeded analysts' estimates.

    HTC shares rose 7 percent, the most since Dec. 19, to close at NT$538. The benchmark TAIEX advanced 1.01 percent.

    The firm reported on Monday fourth-quarter net income climbed 34 percent year-on-year to NT$10 billion (US$308 million), beating the NT$8.69 billion average of 14 analyst estimates compiled by Bloomberg.

    The company boosted earnings after introducing six models in the fourth quarter, including handsets with touch-screens that rival Apple Inc's iPhone. In November, the company started selling its Touch by HTC handset through Sprint Nextel Corp, the third-largest US wireless carrier.

    "HTC's leading technology edge and increased brand awareness are helping the company stay ahead of the competition," Joey Cheng and Robert Chen, Taipei-based analysts at Goldman, Sachs & Co, wrote in a report yesterday.

    Citigroup Global Markets also maintained a "buy" rating on HTC with a target price of NT$850, as "Recent share price weakness offers attractive entry point" into HTC's performance this year, according to an investment note released to its clients dated Monday.

    For the first quarter of this year, Citigroup analysts Dale Gai (蓋欣山) and Kirk Yang (楊應超) said HTC's sales are likely to decline by 20 percent to 25 percent to NT$30 billion from the previous quarter due to potential risks in component shortage.

    ADDITIONAL REPORTING BY KEVIN CHEN
    This story has been viewed 856 times.

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