Life In An Endemic
A recent MOU was signed with China Life Healthcare Investment, allowing RFMD’s operations in China to have collaboration across the provision of medical services and healthcare financing. This could see continued investment into China while a potential medical financing collaboration with China’s largest life insurer would be a positive in our view. On the home front, sustained testing as well as vaccination services will likely keep 2021 earnings elevated. Maintain BUY with a higher DCF-based target price of S$1.27.