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Avi-Tech rating downgraded by RHB due to shortage of auto chips

Lim Hui Jie
Lim Hui Jie • 2 min read
Avi-Tech rating downgraded by RHB due to shortage of auto chips
As supply chain disruptions cause a shortage of auto chips, RHB expects this to impact Avi-Tech's high-margin burn-in segments
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RHB’s Jarick Seet has downgraded Avi-Tech from “buy” to "neutral" with a lowered target price of 42 cents from his previous target price of 52 cents.

Seet highlighted that as supply chain disruptions have caused a global shortage of auto chips, he expects this to impact Avi-Tech Electronics’ high-margin burn-in segment over the short term.

In a Feb 15 note, he notes that Avi-Tech’s 1HFY2021 performance was impacted by the shortage of chips for the automotive sector.

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