He adds: “The tech manufacturing stocks that we have ‘buy’ calls for have rallied 30% to 50% year-to-date (ytd) due to the positive market reaction to various measures from the Monetary Authority of Singapore’s (MAS) $5 billion Equity Market Development Programme (EQDP).”
John Cheong of UOB Kay Hian (UOBKH) has selected Frencken Group (Frencken), UMS Integration (UMS) and Valuetronics Holdings (Valuetronics) as his top picks among Singapore’s tech sector, given their “positive outlook” of sequential earnings growth from their semiconductor customers.
“We recommend investors to be selective in the tech manufacturing sector as there could be huge disparities in the financial performances of different stocks,” writes Cheong, who has maintained his “overweight” call in his Aug 5 report.
