KUALA LUMPUR: UOB Kay Hian Malaysia Research is retaining its overweight stance on electronics manufacturing services (EMS) players has value has emerged after being battered following the Covid-19 outbreak.
In its research note issued on Wednesday, it said EMS players’ valuations have been smashed close to a minus two standard deviation (-2SD) below three-year forward mean price-to-earnings (PE) amid the aggravating Covid-19 outbreak.
“While decelerating global demand is inhibiting earnings growth (hence our earnings revisions), value has emerged in most names after the heavy sell-down.
...