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Research by CGS
Reduce – TP RM2.00

“2Q24 core net profit missed expectations"

■ Unisem’s 2Q24 core net profit fell by 41% yoy on weaker margins given rising staff costs in anticipation of a production ramp-up in 2H24F.
■ Management guided for 8-10% sequential US$ revenue growth in 3Q24F, supported by production ramp-up at existing and new projects in Chengdu.
■ Reiterate Reduce with an unchanged GGM-derived TP of RM2.00. Valuation at 32.6x FY25F P/E looks steep vs. its 9-year historical average of 21x.

Analysts:
Shafiq KADIR
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Dharmini THURAISINGAM
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$KLSE-UNISEM
Research by CGS
Reduce – TP RM2.00

“2Q24 core net profit missed expectations"

■ Unisem’s 2Q24 core net profit fell by 41% yoy on weaker margins given rising staff costs in anticipation of a production ramp-up in 2H24F.
■ Management guided for 8-10% sequential US$ revenue growth in 3Q24F, supported by production ramp-up at existing and new projects in Chengdu.
■ Reiterate Reduce with an unchanged GGM-derived TP of RM2.00. Valuation at 32.6x FY25F P/E looks steep vs. its 9-year historical average of 21x.

Analysts:
Shafiq KADIR
shafiq.abkadir@cgsi.com
Dharmini THURAISINGAM
dharmini@cgsi.com