Semiconductor 
Research by TA Securities
Neutral

"10th Month into the Chip Downcycle"

Up to May 2023, the semiconductor industry is 10 months into a cyclical downcycle. During the month, global semiconductor sales came in at US$40.7bn (+1.7% MoM, -21.1% YoY), versus April 2023’s of US$40.0bn (+0.3% MoM, -21.6% YoY). In all, we maintain our Neutral stance on the semiconductor sector. We have recommendation 
of Buy on [%vlur%] (TP: RM32.15; 26.0x CY24F EPS; on par with 5-year mean), Hold on [%NUaq%] (TP: RM2.95; 28.0x CY24F EPS; on par with 5-year mean) and [%Pqft%] (TP: RM0.575; 24.0x CY24F EPS; -2.0SD to 5-year mean), and Sell on [%Lcrd%] (TP: RM2.60; 22.0x CY24F EPS; on par with 5-year mean). Note that we have upgraded our recommendation on Elsoft from Sell to Hold given its improved risk reward potential following recent share price weakness.

Analyst:
Wilson Loo, CFA
[%eolW%]

Semiconductor 
Research by TA Securities
Neutral

"10th Month into the Chip Downcycle"

Up to May 2023, the semiconductor industry is 10 months into a cyclical downcycle. During the month, global semiconductor sales came in at US$40.7bn (+1.7% MoM, -21.1% YoY), versus April 2023’s of US$40.0bn (+0.3% MoM, -21.6% YoY). In all, we maintain our Neutral stance on the semiconductor sector. We have recommendation 
of Buy on $KLSE-MPI (TP: RM32.15; 26.0x CY24F EPS; on par with 5-year mean), Hold on $KLSE-INARI (TP: RM2.95; 28.0x CY24F EPS; on par with 5-year mean) and $KLSE-ELSOFT (TP: RM0.575; 24.0x CY24F EPS; -2.0SD to 5-year mean), and Sell on $KLSE-UNISEM (TP: RM2.60; 22.0x CY24F EPS; on par with 5-year mean). Note that we have upgraded our recommendation on Elsoft from Sell to Hold given its improved risk reward potential following recent share price weakness.

Analyst:
Wilson Loo, CFA
wilsonloo@ta.com.my

$MPI / 3867 (MALAYSIAN PACIFIC INDUSTRIES BERHAD)