Asustek Computer Inc (
Shares of the nation's largest maker of motherboards gained NT$3.20, or 3.6 percent, to close at NT$92.20 on the Taiwan Stock Exchange, outperforming a 0.11-percent increase in the benchmark TAIEX.
In a filing with the local exchange late on Monday, Asustek said profit in the first six months rose 91 percent from a year earlier to NT$13.58 billion (US$411 million).
Second-quarter profit rose to NT$6.85 billion as the company sold more notebook computers under its own Asus brand.
The company also makes computers for Apple Inc and Sony Corp as well as Sony's PlayStation 3 games console.
The research team at Citigroup Global Markets said in a note dated on Monday that it would maintain a "buy" rating on the Asustek stock as the company is still one of its top picks in the Asia personal computer and motherboard sector.
Citigroup gave a target price of NT$125 for Asustek, given the company's strong improvement margin and record profits from brand business.
Asustek will provide full second-quarter financial details including non-operating profit and outlook at a briefing on Sept. 4 in Taipei.
"While we wait for the analyst meeting on Sept. 4 for more details, we believe Asustek's stock price would react positively to the strong 2007 results," Citigroup analyst Kirk Yang (
UBS AG also maintained a "buy" rating on the stock and raised its 12-month price target to NT$118 from NT$105.
"Asustek could maintain above industry growth given its differentiated product offering, favorable emerging markets exposure and limited US presence," UBS analyst Arthur Hsieh (
"Companies with solid scorecards are favored by investors," Hsieh said. "Ultimately they will make decisions based on corporate profitability."
Taipei-based Asustek won an order from Dell Inc, the world's second-largest computer supplier, to make laptops for delivery beginning in the second half of next year, Hsieh wrote.
Citigroup expects Asustek to ship 61 million motherboards, 7 million to 7.5 million notebook computers and 200,000 to 500,000 units of the super low-cost computer, Eee PC, this year.
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