Globetronics, Unisem, MPI surf crest of semicon wave


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. 

Subscribe now and receive FREE sooka plan for 1 month.
T&C applies.

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Bank of England cuts rates but sees higher inflation after Reeves' budget
Tengku Zafrul: Malaysia secures potential exports to China worth RM3.2bil
Malaysia ready for new investment era with clear economic vision - MoF
Microlink wins RM83.5mil project from Home Affairs Ministry
Ringgit marginally lower against US dollar at the close
TWL Holdings secures RM42.5mil banking facility from UOB Malaysia
Ekovest's Lim is said to consider sale of toll roads for RM5bil
Sunway Malls projects 5% growth for 2024
Pentamaster 3Q net profit halves to RM11.8mil
Metro Healthcare’s 156.63 mln IPO shares for public oversubscribed by 38.60 times

Others Also Read