Friday, 4 May 2012

MIDF Research maintains Buy on Unisem, ups target price to RM1.70

KUALA LUMPUR (May 4): MIDF Research has maintained its Buy rating on UNISEM (M) BHD [] and raised its target price to RM1.70 (from RM1.60) and said the company’s management indicated that 2Q12 will likely post a sequential quarter revenue growth of +8%qoq to +10%qoq suggesting the end of low volume loading.

“Its customers have started to replenish inventory and there are strong demand for its wafer bumping, WLCSP, flip chip and QFN (which are for the smartphone and tablet market) services,” it said in a note Friday.

‘We are tweaking our FY12 and FY13 forecast upwards by +4.2% and +3.3% respectively as volume loading is expected to take off especially in 2H12.

“We maintain our BUY call with a revised target price of RM1.70 (from RM1.60), derived by pegging EPS12 to 13x PER which is one standard deviation higher than its 5-year historical average,” it said.

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