AmBank reiterates 'overweight' rating on tech sector

KUALA LUMPUR: AmBank Research has reiterated its "overweight" rating on the technology sector, favouring companies with sales mix that tilts towards the automotive segment, given the ongoing critical supply-demand imbalance for automotive chip.

"Our top 'buy' continues to be Malaysian Pacific Industries Bhd (MPI) with a fair value (FV) of RM45.16 due to its focus to be the globally preferred outsourced semiconductor assembly and test partner for the automotive segment," it said in a note on Thursday.

The research house also reiterated its ‘buy’ call on Inari Amerton Bhd, with a target price of RM3.72 per share, Vitrox Corporation (FV RM9.89), and Pentamaster Bhd (FV 4.03).

It noted that the global semiconductor sales continue to be robust, with April 2022 sales increasing 21 per cent year-on-year to US$51 billion (US$1 = RM4.39) compared with US$42 billion in April 2021.

"This also marked the 27th month of an uninterrupted growth streak," it added. - Bernama

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

AmBank Research , technology , MPI , Inari , Vitrox , Pentamaster


Next In Business News

Oil slips as U.S. crude stockpiles rise, eyes on U.S. inflation data
Thailand hikes rate for first time since 2018 to tame hot inflation
UOB Malaysia introduces UOB Infinity to corporate clients
Pertama Digital shareholders approve disposal of textile subsidiary
Asian shares fall as investors brace for inflation report
Seven Malaysian firms on Forbes Asia's Best Under A Billion list
MISC consortium awarded long-term time charter parties by QatarEnergy
DOSM: BCI without steel bars in Malaysia increases 0.3-24.2% in July
BPB's subsidiary ventures into sustainable technology-driven commercial crop farm
Bintai Kinden inks partnership with PT Raintech Indo Energi

Others Also Read