Stock Name: UNISEM
Company Name: UNISEM (M) BHD
KUALA LUMPUR: CIMB Equities Research is maintaining its Neutral call on Unisem Holdings Bhd and retains its RM1.40 target price.
It said on Monday, Aug 1 that Unisem management's downbeat tone during Unisem's 2Q11 results briefing and the slight delay in the loading of its tier-1 customer surprised it though there had been hints in its 2Q announcement.
'The positive takeaway was the greater push towards copper wire bonding, its goal of being a world-class supplier, which would help bring in more tier-1 customers and its relook at its processes to cut cost.,' it said.
CIMB Research said taking its cue from the subdued guidance, it cut its FY11 EPS forecast by 16% but maintain our FY12-13 numbers as earnings should normalise then.
'The earnings adjustment has no impact to our RM1.40 target price as we continue to value the stock at a 10% discount to its five-year P/BV of 1.0x. As there are no re-rating catalysts in sight and near-term prospects are weak, we maintain our NEUTRAL rating,' it said.
Company Name: UNISEM (M) BHD
| Research House: CIMB | Price Call: HOLD | Target Price: 1.40 |
KUALA LUMPUR: CIMB Equities Research is maintaining its Neutral call on Unisem Holdings Bhd and retains its RM1.40 target price.
It said on Monday, Aug 1 that Unisem management's downbeat tone during Unisem's 2Q11 results briefing and the slight delay in the loading of its tier-1 customer surprised it though there had been hints in its 2Q announcement.
'The positive takeaway was the greater push towards copper wire bonding, its goal of being a world-class supplier, which would help bring in more tier-1 customers and its relook at its processes to cut cost.,' it said.
CIMB Research said taking its cue from the subdued guidance, it cut its FY11 EPS forecast by 16% but maintain our FY12-13 numbers as earnings should normalise then.
'The earnings adjustment has no impact to our RM1.40 target price as we continue to value the stock at a 10% discount to its five-year P/BV of 1.0x. As there are no re-rating catalysts in sight and near-term prospects are weak, we maintain our NEUTRAL rating,' it said.
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