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The Best Stock
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Asiaweek
Pictures.
Walsin Technology makes electronic components and
ceramic capacitors for mobile phones.
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Fifteen on a winning streak
An investor who bought $100,000-worth of stock in Taiwan-listed
Walsin Technology 12 months ago will be sitting on more than $1
million today. If he sold in May, when the share price soared to
a record NT$328 ($10.55), he would have banked a cool $2.3 million.
And Walsin is not some dotcom play. "It's a solid company," says
John Brebeck, an analyst with Jardine Fleming Securities in Taiwan.
"It has excellent management."
Walsin also boasts quick reflexes. Until 1998, its focus was on
multi-layered ceramic capacitors (MLCC) for personal computers.
When PC sales slowed, the company shifted to MLCC for mobile phones.
Analysts expect earnings to top $50 million on sales of $173 million
this year (1999 profit: $10 million). The number of mobile phones
in Asia is expected to reach 206 million by the end of 2000 and
rise to 357 million in 2004.
Sophia Liu of Masterlink Securities in Taipei is impressed by the
quality of Walsin's products. Their rejection rate is 5% compared
with up to 20% for other companies' components. But there are worries.
Palladium, a key raw material, recently rose to $852 per troy ounce,
up 72% from the beginning of the year. Walsin reduced its MLCC layers
from 21 to 18 without, it says, compromising quality. Large Japanese
makers are ramping up production, raising fears MLCC
prices could collapse. Even so, Walsin remains a strong buy for
most analysts.
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FIFTEEN
ON A WINNING
STREAK
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| WALSIN
TECHNOLOGY (Taiwan) |
Mobile-phone
parts
|
942% |
0.27 |
16 |
STRONG
BUY |
| HIMACHAL
FUTURISTIC (India) |
Telecom equipment
|
630% |
0.61 |
51 |
STRONG
BUY |
CHUGAI
MINING
(Japan) |
Gold mining
|
531% |
0.24 |
7 |
N.A. |
| ICICI
BANKING CORP. (India) |
Banking
|
473% |
0.2 |
22 |
BUY |
CATS
INC.
(Japan) |
Pest Control
|
453% |
0.37 |
37 |
BUY |
| EPISIL
TECHNOLOGIES (Taiwan) |
Electronic
components
|
425% |
0.09 |
24 |
STRONG
BUY |
| NET
ONE SYSTEMS (Japan) |
Electronic
components
|
424% |
16.29 |
134 |
BUY |
| FURUKAWA
ELECTRIC (Japan) |
Wires and cables
|
408% |
0.84 |
35 |
HOLD |
| LEGEND
HOLDINGS (China) |
Computers
|
400% |
0.01 |
97 |
BUY |
PACIFIC
CENTURY CYBERWORKS
(Hong Kong) |
Internet &
telecom
|
387% |
-0.01 |
— |
BUY |
ASM
PACIFIC TECHNOLOGY
(Hong Kong) |
Semiconductor
equipment
|
361% |
0.29 |
12 |
STRONG
BUY |
| NITTOKU
ENGINEERING (Japan) |
Machinery
|
352% |
0.67 |
26 |
STRONG
BUY |
SHIMURA
KAKO
(Japan) |
Nickel processing
|
328% |
0.07 |
105 |
N.A. |
| DBTEL
INCORPORATED (Taiwan) |
Electronic
components
|
319% |
0.12 |
15 |
BUY |
| KEYCORP
LIMITED (Australia) |
Smart Cards
|
306% |
-0.02 |
— |
STRONG
BUY |
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The
list was drawn from a universe of 1,680 Asian stocks with
a market capitalization of at least $300 million. Prices
as of Aug. 1.Forecast earnings per share, p/e ratio and
recommendation are the mean estimates of analysts who follow
the company.
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— Allen T. Cheng
Write to Asiaweek at mail@web.asiaweek.com
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