KUALA LUMPUR: UOB Kay Hian Malaysia Research has trimmed its technology sector earnings for FY2020 to 2021 by 2% to 7% to account for the extended movement control order (MCO).
“While short-term earnings disruption is inevitable, structural growth is inexorable, stemming from the ripening 5G commercialisation and trade diversion, ” it said in a report on Thursday.
It preferred Globetronics on growing 5G relevance as well as VS Industry for electronics manufacturing services (EMS) exposure as valuation has been overly conservative by ignoring its valuable assets. It maintained its Overweight outlook.
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