- Prefer electronics manufacturing services (EMS) over semicon over the next 6 months, with Venture Corp as our top pick.
- On 7 Oct 2022, the US department of Commence published new restrictions on semicon-related exports to China. These affects the sale of equipment used in the manufacture of semicon chips, especially those at the advanced nodes.
AEM (68% of FY21 revenue from semicon business)
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Grand Venture Technology (71% of FY21 revenue from semicon business)
- We reiterate our REDUCE recommendation on Grand Venture Technology (SGX:JLB) as its net profit recovery could be delayed till FY24F. We valued Grand Venture Technology at 9.6x P/E multiple (0.5 standard deviation below its 4-year average (FY19-22F) given the slowdown concerns and delay in onboarding new front-end customers.
- See report: Grand Venture Technology - CGS-CIMB Research 2022-10-14: Front-End Diversification To Take Longer
UMS (89% of FY21 revenue from semicon business)
- Read more at SGinvestors.io.
