[%VDeh%]
Research by RHB
Buy – TP RM4.40

“Recovery Underway, Positive Outlook For 2H24; BUY"

MaintainBUYandMYR4.40TP(10%upside),c.2%yield.1H24coreearnings were below expectations, undermined by lower margins from product mix and additional operational costs. Management is cautiously optimistic about 2H24 loadings, backed by higher loadings from automotive customers, new programmes, and supply chain diversification. Despite the earnings miss, we believe a recovery is underway with QoQ improvement and stronger loadings ahead, consistent with the overall sector trajectory. Therefore, we advocate positioning to ride on the new semiconductor cycle on weakness.

Analyst:
Lee Meng Horng 
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$KLSE-UNISEM
Research by RHB
Buy – TP RM4.40

“Recovery Underway, Positive Outlook For 2H24; BUY"

MaintainBUYandMYR4.40TP(10%upside),c.2%yield.1H24coreearnings were below expectations, undermined by lower margins from product mix and additional operational costs. Management is cautiously optimistic about 2H24 loadings, backed by higher loadings from automotive customers, new programmes, and supply chain diversification. Despite the earnings miss, we believe a recovery is underway with QoQ improvement and stronger loadings ahead, consistent with the overall sector trajectory. Therefore, we advocate positioning to ride on the new semiconductor cycle on weakness.

Analyst:
Lee Meng Horng 
lee.meng.horng@rhbgroup.com