KUALA LUMPUR (May 28): Affin Hwang Capital Research has upgraded Uchi Technologies Bhd to “Buy” at RM2.67 with a higher target price (TP) of RM3.09 (from RM3.02) and said Uchi’s 1Q19 results were seasonally weaker but in line with expectations.

In a note toay, the research house said it does not expect significant deviations in the coming quarters.

It said stability has been a crucial component of Uchi’s earnings in the past and this has ensured a steady dividend payout.

“At a 2019E yield of 6%, we think this is attractive as there could be upside potential from the expansion of a new product as well as the current weak ringgit.

“Upgrade to Buy with a higher TP of RM3.09 (based on an unchanged target PE multiple of 17x but after rolling forward to 2020E EPS),” it said.