- Global semicon sales are expected to improve in 2024F, with growth projections of 13.1%-20.2% y-o-y, according to WSTS and IDC. We upgrade the semicon sector from Neutral previously to OVERWEIGHT as we look towards FY25F prospects.
Sector to recover further in 2025F
- - Read this at SGinvestors.io -
- We note that industry forecaster IDC has called the bottom for the semicon industry on 14 Nov 2023 and projects a 20.2% y-o-y growth in global semicon revenue in 2024F.
Short term hiccup in 2023; Long term outlook still bright
- In its latest Semiconductor Market Forecast published on 28 Nov 2023, the World Semiconductor Trade Statistics (WSTS) projected that global semicon sales should fall 9.4% y-o-y to US$520bn in 2023F but recover 13.1% y-o-y to US$588bn in 2024F.
- - Read this at SGinvestors.io -
- In our view, AEM (SGX:AWX), Frencken (SGX:E28) and UMS (SGX:558) are beneficiaries of the trade diversion into Malaysia and the expected semicon recovery in 2024-25F.
- Our top small-cap picks to play into the semicon recovery theme are Frencken and UMS.
AEM (SGX:AWX) – 2H24F recovery; We expect stronger FY25F
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2023-12-06
More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector
