UOB Kay Hian Research retains overweight on EMS players

VS Industry Bhd plant in Senai inudstrial area, Johor. UOB Kay Hian Malaysia Research said: “We prefer VS Industry as its current valuation has been overly conservative in assuming negative equities for its China operations while ignoring its valuable assets. Maintain overweight."

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.