5-JAN-2021

iSaham Outlook
Daily Summary Analyst Report
 TECHNOLOGY SECTOR
Tech still rules
• Kenanga analyst maintained OVERWEIGHT call on the technology sector moving into
1QCY21 as demand for semiconductor components remain robust with the dawning of
the 5G era

iSaham Outlook
• This is led by growing demand for electronic gadgets like 5G smartphones, 5G base
stations, laptops, gaming consoles, wireless earphones and automotive
• The top-5 laptop brands (HP, Lenovo, Acer, Dell and Asus) recorded an all time high sales in
Oct and Nov as the work-from-home (WFH) practice continues
• Owing to ramp up in laptop orders, wafer fabrication houses have reported utilisation rates
close to 100% as the recovery in consumer demand outpaced production capacity due to
under- investment amid the global pandemic

Source: Kenanga (5-Jan-2021)

 TECHNOLOGY SECTOR
Tech still rules
• With the expectation for demand to remain elevated going into 2021, significant expansion
plans are slated to take place to meet the surging demand for front-end capacity
• Kenanga analyst have identified Kelington Group Berhad (KGB) as a key beneficiary of

iSaham Outlook
Semiconductor Manufacturing International Corporation (SMIC) fab expansion plan
• They are also optimistic for INARI and MPI to ride the 5G adoption in smartphones and
data centre expansion, with the latter further benefiting from the rapid adoption of electric
vehicles

Source: Kenanga (5-Jan-2021)

 TECHNOLOGY SECTOR
Kenanga Research Rating
Stock Rating Current Price (RM) Target Price (RM)

KGB OUTPERFORM 1.61 2.30

INARI OUTPERFORM 2.63 3.14

MPI OUTPERFORM 24.02 29.00

iSaham Outlook
UNISEM OUTPERFORM 6.01 5.15

JHM MARKET PERFORM 1.78 2.00

KESM MARKET PERFORM 12.44 10.60

PIE MARKET PERFORM 2.37 2.32

SKP MARKET PERFORM 2.13 1.83

*OUTPERFORM: A particular stock’s Expected Total Return is MORE than 10%

*MARKET PERFORM: A particular stock’s Expected Total Return is WITHIN the range of -5% to 10%

Source: Kenanga (5-Jan-2021)

 PLANTATION SECTOR
Strong price sentiment to sustain for a while

• Crude Palm Oil (CPO) price will remain elevated (at above RM3,000/mt) until 1Q21
• This is due to supply tightness of major edible oils, low inventory levels in major edible oil
consuming countries, and La Nina phenomenon

iSaham Outlook
• It is anticipated that CPO price to soften from 2Q21 onwards, on the back of better supply outlook
for major edible oils, which will in turn result in more balanced demand- supply dynamics
• NEUTRAL stance on the sector, as analyst believed that the current high CPO price will not sustain
over the longer term
• Among the plantation stocks under coverage, small-to-mid cap plantation players will likely
outperform the big cap players, due to their emphasis on upstream plantation segment
• Hong Leong analyst top pick for plantation sector is TSH Resources (TP: RM1.38)

Source: HongLeong (5-Jan-2021)

 PLANTATION SECTOR
HLIB Research Rating

Stock Rating Current Price (RM) Target Price (RM)

TSH BUY 1.15 1.38

CBIP HOLD 1.11 1.09

iSaham Outlook
FGV BUY 1.29 1.39

IOICORP HOLD 4.45 4.48

KLK BUY 23.74 27.28

SIMEPLT HOLD 5.01 5.20

*BUY: Expected absolute return of +10% or more over the next 12 months.
*HOLD: Expected absolute return of -10% to +10% over the next 12 months

Source: HongLeong (5-Jan-2021)

 TOPGLOV | TOP GLOVE CORPORATION BHD
Special dividend of additional 20% payout for 2Q-4Q in FY2021
• Top Glove announced that it will be increasing its dividend payout ratio from its usual 50% to 70% for the next three
quarters in view of its anticipated exemplary financial performance for FY2021 coupled with strong cash flow
• MIDF research analyst viewed that sentiment for the glove companies has turned negative, accompanied by the
flurry of news revolving Covid-19 vaccines

iSaham Outlook
• However, overall research on this sector reveal that demand for gloves remain strong with positive momentum for
average selling prices (ASP) of gloves products
• Top Glove acknowledged that considerations on environment, social and governance (ESG) weigh higher in
sustainable investing. Thus, the company has committed to improving its employees’ accommodation by setting
aside budget to purchase and/or build better housing for them.
• MIDF analyst viewed TOPGLOV as maintain BUY with an adjusted TP of RM8.29 (previously RM10.96). The new TP is
based on consideration of the works that can be done to further improve its employee welfare

Current price: 5.50

Target Price: 8.29
Source: MIDF (5-Jan-2021) | https://www.isaham.my/stock/topglov Average Analysts FV: 9.36
 Bonus Issue
Company Sector Type Status Date
EITA Industrial Materials, Components & 1-for-1 bonus issue Proposed Announced: 18-Nov-2020
Equipment
UWC Semiconductors 1-for-1 bonus issue Proposed Announced: 3-Dec-2020
G3 Personal Goods 3-for-1 bonus issue Proposed Announced: 8-Dec-2020
SLVEST Industrial Services 1-for-4 bonus issue Proposed Announced: 15-Dec-2020

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LATITUD Household Goods 1-for-1 bonus issue Proposed Announced: 17-Dec-2020
FOCUSP Personal Goods 1-for-2 bonus issue Proposed Announced: 22-Dec-2020
KOMARK Packaging Materials 1-for-2 bonus issue Approved Ex Date: 6-Jan-2021
GREATEC Technology Equipment 1-for-1 bonus issue Approved Ex Date: 7-Jan-2021
KPOWER Personal Goods 1-for-3 bonus issue Approved Ex Date: 12-Jan-2021
XINHWA Transportation & Logistics Services 1-for-2 bonus issue Approved Ex Date: 12-Jan-2021
SCIENTX Packaging Materials 2-for-1 bonus issue Approved Ex Date: 21-Jan-2021
 Disclaimer & Risk Disclosure

iSaham Daily Outlook contains the summary of analyst reports published

by investment banks and quarter reports published by listed companies
and are intended for general informational purposes only.

iSaham Outlook
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