Hong Leong Investment Bank Bhd has reiterated a “BUY” recommendation for UWC Bhd with a lower TP of RM6.52 (previously RM6.75), pegged to unchanged 50x of FY23 EPS.
It said that the ongoing trade intensity may eventually benefit UWC which provides a one-stop solution as more companies shift productions out of China to avoid import tariffs.
HLIB said that the semi orders remain very strong;) logic chip testers including the new tester which is expected to commence production by 3QFY22; auto chip testers are currently in the production pipeline where CNC machines are equipped with robots to automate material handling; received an order for 5G-related testers, and production of autonomous vehicle reliability chip testers will ramp by end of 2022.
On top of the leased Taiping plant, the newly acquired 12-acre land will double the existing Batu Kawan capacity and cements its long term growth trajectory.
