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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.
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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.

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