CGS-CIMB Research retains overweight on tech manufacturers

SKP Resources component assembly. CGS-CIMB Research said SKP was its preferred pick for the sector.

KUALA LUMPUR: CGS-CIMB Equities Research reiterated its Overweight call on the tech manufacturing services sector as it still sees upside to valuations which have not fully priced in the steady recovery in sales and margins in CY20-21F.

In its sector report on Friday, the research house said key re-rating catalysts for the sector include: i) stronger-than-expected recovery in sales and margins; and ii) the onboarding of new large clients, once movement restrictions gradually ease.