Trending Sector
Singapore Tech Stocks
2 datapoints to watch in the upcoming 2Q23 results
FY2022 foreign currency risk disclosure
| Base Reported | MYR exposure(in SGD’ 000s) | |
| UMS | Financial Assets | 5,607 |
| Venture | Assets | 28,840 |
| AEM | Net Assets | 29,528 |
Source: DBS Bank, Companies FY22 annual reports
Global semiconductor sales (US$bil)
Source: Semiconductor Industry Association, Bloomberg Finance L.P.
- Two positive factors to watch amidst the anticipated weak showing for upcoming 2Q’23 results –
- #1) Currency impact (as USD has strengthened against MYR) may be positive for those manufacturers operating out of Malaysia
- Venture, UMS, AEM have manufacturing plants in Malaysia, with additional facilities coming up for Venture (400k sqft in Batu Kawan) and UMS (300k sqft in Penang)
- Venture and AEM have MYR as the second largest FX currency cost exposure (after USD)
- #2) Orderbook momentum should pick up on positive signs of industry bottoming/turnaround
- Semiconductor Industry Association: Global semiconductor sales recorded a third consecutive positive m-o-m increase in May
- Gartner: Expects 1.3% q-o-q growth in DRAM (subset of the weak memory segment) revenue in 2Q’23, and double digit growth thereafter to 3Q’24
- Better-than-expected results and optimisic outlook by Micron and Samsung reinforce this
- We remain hopeful of a stronger 2H’23 vs. 1H’23, and a recovery in 2024 -> UMS Holdings (BUY, TP S$1.32) is our top pick in this sector
