Malaysia Tech Sector Could See Extending Earnings Growth — Market Talk

Malaysia's technology sector could see further earnings growth and positive estimate revisions, Hong Leong IB analysts Toh Woo Kim and Sam Jun Kit say in a note. Their four key investment themes are expected to gain momentum into 2H. These are a recovery in analog chips, stronger semiconductor equipment demand, tight optical connectivity supply amid high demand, and improving Intel-related demand. They prefer companies where earnings growth can outpace valuation expansion. Hong Leong maintains an overweight rating on the Malaysian technology sector, citing a broadening semiconductor upcycle and sustained earnings momentum, pegging UWC, Inari Amertron, Unisem (M) and Itmax System as its top picks. ([email protected])