KUALA LUMPUR: Globetronics Technology Bhd
shares on Bursa Malaysia surged in the early session after the company entered into a strategic partnership with Taiwan-based ChipMOS Technologies Inc for integrated circuit services.
It was also one of the most actively traded stocks.
Globetronics said the three-year agreement was worth at least RM145 million in a stock exchange filing yesterday.
ChipMOS, listed on both the Taiwan Stock Exchange and Nasdaq, specialises in semiconductor assembly and testing services, including memory and mixed-signal integrated circuit testing, as well as advanced packaging solutions.
At 10.10 am, Globetronics shares jumped 4.5 sen, or 8.8 per cent, to 55.5 sen, with 26.24 million shares traded.
RHB Investment Bank Bhd said that while it likes the company’s strategy to diversify into new products in search of growth avenues, execution and achieving optimal production yield in a new packaging platform would be key in the new development.
"Potential earnings of RM2-6 million in the financial years of 2025-2027 assuming an estimated net margin of 8-10 per cent with the expectation of a gradual ramp-up in the second half of 2025 with no major loss in yield.
"We keep (our) FY2024 forecast but raise our FY2025-2026 forecast earnings by 3-8 per cent as we have previously factored in some contributions from the new product,” it said in a note.
The investment bank has upgraded the stock to a "trading buy” given the positive development but "the share price weakness may have reflected the negatives on the resignation of auditors, change of top management and ownership, as well as business strategy.”
"The structural change in the company strategy and management remains a key risk,” it warned. "Key downside risks include further weakening of smartphone and peripheral sales; stronger ringgit against US dollar; major product and/or customer losses; and major changes in the current management team.” - Bernama
