kuala lumpur (june 27): kenanga studies has maintained its “overweight” score of the technology quarter stepping into the 1/3 sector of 2022 (3q22), premised on resilient chip call for because the semiconductor enterprise affiliation suggested a 23% 12 months-on-12 months (y-o-y) growth in semiconductor sales in 1q22.
in a observe on monday (june 27), the research house said that the shipment numbers for car income and customer cease-devices did not reflect the equal optimism.
“we characteristic this to the sporadic lockdowns in china, inflicting backlogs to pile up.
“we remain selectively tremendous on the sector, favouring businesses that were unjustifiably bashed down however nevertheless maintain robust fundamentals to weather thru this excessive inflationary and growing interest price environment,” it stated.
kenanga stated despite weakening cargo numbers for international smartphones (1q22: -8.9% y-o-y), america smartphone producer became the handiest brand to file a moderate boom of 2.2% y-o-y and is anticipated to hold its manufacturing unchanged for its upcoming new model.
“as such, we like inari amertron bhd (outperform [op]; target rate [tp]: rm3.30) for being within the us telephone supply chain with a emblem that is able to hold developing its unswerving consumer base.
“with the chinese language authorities easing again on lockdowns, automobile sales inside the eu union and china published encouraging numbers (may additionally 2022: +sixty eight% and +15.6% month-on-month respectively), resuming the healing trend.
“this bodes for malaysian pacific industries bhd (op; tp: rm38.10) given its robust automotive publicity and greater importantly having a head start in next-technology programs which might be steadily being adopted in electric powered vehicles,” it said.
kenanga stated that moving away from intense competition surrounding household cleaning merchandise, pie industrial bhd (op; tp: rm3.70) offers an exciting investment case given its publicity to specific customers with solid order visibility.
“the new chinese language consumer (regarding asic pc hardware) secured because of exchange diversion is anticipated to contribute meaningfully to the organization’s earnings for the financial year finishing dec 31, 2022,” it stated.