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Chartered 4th quarter 2007 - February 1st 2008

The semiconductor industry is very competitive and saturated. Chartered has not been doing well in this environment.

 

from Lim & Tan

 

CSM
In its scheduled mid-quarter update (for 4Q2007),
CSM reaffirmed its 4Q2007 guidance which was
orginally provided on Oct 26 2007.
As a result, 4Q2007 sales is expected to be down
2-6% qoq, reflecting lower utilization rate and
average selling price and bottom-line is expected
to range between a profit of US$1-11mln compared
to a profit of US$7mln in 3Q2007 (would have been
profit of US$115mln if the tax benefit was included)
as well as 4Q2006.
With its major customer's (AMD) recent
announcement of delay in the launch of new chipsets
and widening losses, CSM may continue to face
challenging times going into the seasonally weak
1Q2008 (potentially dipping into the red in
1Q2008).
Hence, despite its lacklustre share price
performance (trading close to its 4 year lows) we
maintain our HOLD recommendation (its 1.2x
price to book is at an appropriate discount to
TSMC's 3.1x, given its much smaller size and lagging
technological nodes).


 

 

Chartered plans to release fourth quarter 2007 results on Friday, February 1, 2008, Singapore time, before the Singapore market opens.

website: www.charteredsemi.com,