KUALA LUMPUR: Semiconductor stocks Globetronics, Unisem and Malaysian Pacific Industries
(MPI) continued to ride the technology wave, emerging as among the top gainers on Thursday though analysts said their valuations were lofty.
At 3pm, the KLCI was up 0.5 point or 0.03% to 1,747.13. Turnover was 1.63 billion shares valued at RM1.06bil. There were 289 gainers, 372 losers and 481 counters unchanged.
Globetronics rose 17 sen to RM6.65 with 1.28 million shares done, Unisem gained 15 sen to RM3.65 with 855,800 units done. MPI advanced 14 sen to RM12.64.
Profit taking saw KESM falling 16 sen to RM19.10 with 15,800 shares done.
AmInvestment Research has a Neutral stance on the technology sector over the next 12 months.
In its research note, it said the key theme of the sector in 2018 should revolve around connected cars, smart homes and automation.
“This paints a positive outlook for sensor and radio frequency (RF) chip manufacturers, automated equipment manufacturers and companies looking to improve operational efficiencies through automation.
“On the other hand, we believe the smartphone segment is on the verge of entering a single-digit growth trajectory as it moves towards saturation point in major markets,” it said.
Overall, AmInvest Research said earnings prospects were looking positive for local semiconductor companies, but valuations are unattractive.
In 2018, companies in the limelight are Inari Amertron (Hold, FV: RM3), MPI (Hold, FV: RM13.11), Unisem (Hold, FV: RM3.32) and Globetronics (Unrated) given sensors and RF are imperatives in a connected world.
However, prospects for ViTrox Corporation (Unrated) and Pentamaster Corporation (Unrated) are also exciting amid the rising adoption of automation.
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