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CIMB Research sees weak demand, retains Hold for KESM


CIMB Research learnt that KESM’s utilisation fell below 60% in 1QFY7/19 mainly due to inventory adjustment at its immediate customers in light of escalating US-China trade war.

CIMB Research learnt that KESM’s utilisation fell below 60% in 1QFY7/19 mainly due to inventory adjustment at its immediate customers in light of escalating US-China trade war.

KUALA LUMPUR: CIMB Equities Research expects weak demand for semiconductor-related KESM’s products in 2QFY19F due to ongoing inventory adjustment from its customers, but expect stronger demand recovery in 2HFY19F.

It had on Wednesday cut its FY19-21F EPS by 7%-8% to reflect lower utilisation and sales growth assumptions in China, which is directly impacted by trade war.

Analyst Reports , Corporate News

   

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