arget price: RM6.

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On a positive note, Affin Hwang said that Globetronics’ sensor customer is guiding for even
stronger light sensor volumes in the second quarter, which should compensate for some of
the slack in the first half of the year.
Moreover, it noted that volumes of Globetronics’ other sensors – gesture, proximity and
motion sensors for wearable products – are holding up well and should soften the blow of
the weaker light sensor volumes (>60% of sensor production volume).
Affin Hwang expects production volumes for the overall sensor business to contract in the
first and second quarter respectively, before staging a recovery in the second half of the
year.
It revised lower its average forecast for the monthly production of sensors to 47 million
units in 2018 forecast from 56 million units previously.
“This represents a 16% downward revision, but still a 74% growth over the 2017 production.
Our 2018-2020 forecast earnings per share (EPS) are cut by 23%, 4%, 5% respectively to
account for the change in the light sensor volume forecasts, depreciation charges and a
revision in our ringgit to dollar exchange rate assumption,” it said.
It maintained a buy rating with a lowered target price to RM6.16. The lower target price is
based on an unchanged 2018 forecast price to earnings ratio of 20 times

Read more at https://www.thestar.com.my/business/business-news/2018/03/28/analyst-

reports/#EvdmDyuzjQ0deeQy.99