Positive sales but neutral outlook for semiconductor sector

TheStar Wed, Oct 07, 2020 09:40am - 3 years View Original


“Our top pick is Unisem, (pic of Unisem factory) which we like for its undemanding valuations as well as growth prospects, underpinned by its healthy pipeline, capacity expansion, cost optimisation efforts, and robust balance sheet, ” TA Securities said, adding that the target price is RM4.28.

PETALING JAYA: Although global semiconductor sales have continued to rise for seven consecutive months on a year-on-year (y-o-y) basis, TA Securities Research remains neutral on the Malaysian semiconductor sector.

The research house said in a note that a prolonged Covid-19 pandemic, weighing on economic growth and sentiment, is a key risk factor for the semiconductor sector.

In addition, a prolonged and heightened trade war as well as fluctuations in the US dollar-ringgit exchange rate could potentially dampen the sector’s performance, according to TA Securities Research.

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