Out of 7 companies under active coverage of AmBank, 5 reported earnings which were within estimates with the remaining 2 below expectations.
“We maintain OVERWEIGHT on the sector based on positive revenue recovery prospects of semiconductor players in 2024,” say the analysts.
The semiconductor industry report
ViTrox Corp’s (VITROX) (BUY; FV: RM9.00) earnings were below expectation, primarily attributed to lower demand in machine vision system (MVS) and automated board inspection (ABI) segments amid softer global economic growth and slower recovery in the semiconductor industry. Infomina (HOLD; FV:RM1.70) results also disappointed due to slower recognition of orderbook for the renewal segment.
The sector’s 4QCY23 earnings improved by 15% QoQ, mainly contributed by the outsourced semiconductor assembly and test (OSAT) segment (+33%). 4QCY23 saw an improvement in demand for consumer electronics with new smart phone launches.
Consumer electronics segment picking up momentum albeit still at a slow pace supported by new smartphone launches and PC refresh cycles, says the analysts.
Target – Chinese customers
ATE players continued to strengthen market presence in China and Europe by increasing their sales/distribution partners and setting up regional sales offices/plants as well as participating in exhibitions to increase exposure to local Chinese customers.
Table of Contents
Leave a Reply
You must be logged in to post a comment.