Maybank IB Research has reiterated its positive rating for the country's technology sector after being confident of increasing global and domestic semiconductor supply chains and believes the prospects for the sector will be sustained at this time.
This is supported by key catalysts such as the deployment of 5G networks with high usage rates as well as strong demand and supply for 5G devices as well as the growing sub-sector including automotive / electric vehicles, Internet of Things (IoT), artificial intelligence (AI), medicine / science life and Industry Revolution 4.0.
According to Maybank IB through its research notes, World Semiconductor Trade Statistics (WSTS) projected global semiconductor sales to increase by 8.4% year-on-year and the International Semiconductor Equipment and Materials Association estimates global fabrication equipment spending will strengthen 13% year-on-year this year.
"We believe the good performance of the sector's stock prices as well as the revaluation of valuations is supported by favorable surveys from the global semiconductor supply chain, the catalyst for strong revenue growth in the near term as well as abundant domestic liquidity.
"Meanwhile, most technology hardware companies are backed by healthy balance attachments with low net cash / gearing positions as well as mergers and acquisitions (M&A) opportunities," he said.
The investment bank's main options with 'buy' recommendations include Inari, Globetronics and rontken.
