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

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


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