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SG semicon sector’s trading at a discount to Malaysian counterpart ‘not justified’: CGS-CIMB

Lim Hui Jie
Lim Hui Jie8/29/2022 02:31 PM GMT+08  • 3 min read
SG semicon sector’s trading at a discount to Malaysian counterpart ‘not justified’: CGS-CIMB
Tng's top pick on the SGX is UMS Holdings, but he also includes AEM and GVT in his picks. Photo: Unsplash
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CGS-CIMB Research’s William Tng is of the opinion that Singapore’s semiconductor sector is trading at a discount compared to its Malaysian counterpart, which is “not justified”.

In a sector note, Tng explains that comparing the Singapore semiconductor sector (SSS) with the Malaysian semiconductor sector (MSS), the SSS trades at a 2023 P/E multiple of 10.2x, a 48.5% discount to the MSS average of 19.8x as of Aug 26.

This is despite the SSS’s higher three-year earnings per share (EPS) compounded annual growth rate (CAGR) from 2021 to 2024 of 16.6% vs 15.8% for the MSS.

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