PETALING JAYA: BIMB Research is moderately upbeat about the technology sector’s outlook, given that results from the reporting season for the second quarter of this year (2Q25) have come in within its expectations.
The research house said in a report the recent results were largely steady, but the road to recovery remains uneven, hence it remains selective.
BIMB Research said it continues to favour Zetrix AI Bhd with a target price of RM1.54 and Dagang Nexchange Bhd
(DNeX) at a target price of 33 sen, given their exposure to digitalisation.
It has also affirmed a “hold” call on Inari Amerton Bhd with a target price of RM2.23 as a recovery in the company’s radio frequency division remains elusive.
Meanwhile, BIMB Research has kept a “sell” call on Unisem (M) Bhd at a target price of RM1.83 while revising Malaysian Pacific Industries Bhd (MPI) from a “hold” to a “take profit/sell” rating following the share’s recent price rally, with no changes to fundamentals and a target price of RM22.58.
The research house had also reclassified NeXG Bhd as “not rated”, thus ceasing active coverage as part of its internal review.
BIMB Research, which reiterated a “neutral” stance on the sector for the rest of the year, said “looking ahead, we remain moderately upbeat on the sector”.
It noted global semiconductor sales climbed 7.8% quarter-on-quarter in 2Q25 and are forecast to grow by 11.2% this year by the Semiconductor Industry Association, suggesting underlying demand strength, particularly from artificial intelligence and high-performance computing.
The National Semiconductor Strategy and New Industrial Master Plan 2030, alongside steady foreign direct investment, should provide structural support to the sector, said BIMB Research.
