Home Capital Broker's Calls

Analysts mixed on Singapore technology sector, RHB downgrades rating to ‘neutral’

Lim Hui Jie
Lim Hui Jie3/16/2021 01:38 PM GMT+08  • 5 min read
Analysts mixed on Singapore technology sector, RHB downgrades rating to ‘neutral’
RHB Group Research and Maybank Kim Eng give their takes on the Singapore tech sector.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

RHB Group Research’s Jarick Seet has downgraded his rating on Singapore’s technology sector from “overweight” to “neutral”, saying that he is “selectively positive” on the sector.

Seet is of the view that the semiconductor industry – which did well in FY2020 – should continue to outperform estimates this year. He also notes that the automotive sector is slowly picking up as well.

As such, the resumption of global economic growth, as well as the recovery of this sector, could benefit many manufacturers. His top picks are Frencken and Fu Yu, with “buy” ratings for both stocks and target prices of $1.52 and 33 cents respectively.

He thinks chipmakers’ strong performance will continue in 2021, citing statistics from SEMI, he says the global sales of semiconductor manufacturing equipment by original equipment manufacturers are projected to grow 6% y-o-y to US$63.2billion ($85.02 billion) in 2020, from US$59.6 billion in 2019.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now