Sales Bonanza With Manageable Impact From Ongoing Disruption
Sector earnings prospects remain robust, with ATA’s, SKP’s and VSI’s respective main customers ramping up higher orders alongside aggressive expansion to cater for trade diversion-related orders. While there are still incidents of COVID-19 outbreaks among the trio’s workers, we believe the manufacturers are better prepared post series of incidents last year, hence rendering to manageable earnings disruptions. Maintain OVERWEIGHT. Top pick: VS.