The research house cut the target price by 95 sen to RM2.80 but maintained its "buy" call on Globetronics premised on its undemanding valuations and favourable net cash position as well as earnings support from stable sensor volume.
In 2Q21, Globetronics' core net profit was RM6.4mil, which brought 1H21 core earnings to RM17.8mil, or 26% and 28% of Maybank IB's and consensus full-year estimates respectively.
The result was broadly within Maybank IB's expectations as Globetronics' earnings are seasonally stronger in 2H and softest in 2Q.
However, the research house lowered FY21-23 earnings forecasts after mainly imputing lower sensor volume in anticipation of delayed mass production of new generation sensors and new products, initally slated for 2H21.
"Elsewhere, we note that Globetronics is mulling on restructuring their QCTD segment due to limited growth and earnings prospects.
"Nevertheless, we have not imputed any earnings impact from this, pending further updates, said Maybank IB.