$SAM / 9822 (SAM ENGINEERING & EQUIPMENT (M) BERHAD)
Research by Maybank
BUY – TP RM6.85
" Signs showing: Stars alignment is drawing near"
We maintain our BUY rating on SAM Engineering & Equipment (SAMEE) with an unchanged TP of MYR6.85 – based on 32.7x PER on CY25E EPS, at +1.5SD to its 5Y mean 12M fwd. PER. We believe that SAMEE is well positioned to capitalise on the expected cyclical recovery of both the aerospace and front-end semiconductor sectors. SAMEE is a secular growth stock and is one of our technology sector’s top BUYs.
Analyst:
Jeremie Yap
jeremie.yap@maybank-ib.com
$SAM / 9822 (SAM ENGINEERING & EQUIPMENT (M) BERHAD)
Research by HLIB
Hold – TP of MYR 26.90
“Ended with a bang”
SAMEE reported FY24 core earnings of RM108m (+27% YoY) which beat expectations thanks to stronger-than-expected EBITDA margin. We are positive on SAMEE as: (i) the global semiconductor industry is gradually recovering from the inventory correction cycle; and (ii) aerospace is turning around strongly as global air passenger travel has recovered to >99% of pre-pandemic level. While the group's Thailand expansion will take time before breaking-even, we are encouraged by the narrowing losses in each subsequent quarter. We maintain HOLD on SAMEE with a higher TP of RM6.12.
Analyst(s):
Tan J Young
jytan@hlib.hongleong.com.my
OTHERSSAM ENGINEERING & EQUIPMENT (M) BERHAD ("SAMEE" OR "COMPANY")
DECLARATION OF FIRST INTERIM SINGLE TIER DIVIDEND OF 3.30 SEN PER ORDINARY SHARE FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024
PETALING JAYA: Better prospects for the main businesses of SAM Engineering & Equipment (M) Bhd have sent its shares sharply higher following a big brokerage initiating coverage on the stock.
$SAM / 9822 (SAM ENGINEERING & EQUIPMENT (M) BERHAD)
Research by Maybank
Buy – TP RM6.05
“A secular growth stock poised to ride on a multi-year upcycle"
We initiate coverage on SAM Engineering & Equipment (SAMEE) with a BUY rating and a TP of MYR6.05 – based on 31x PER on CY25E EPS, which is at parity to +1SD to its 5-year forward PER. We believe that SAMEE is well positioned to capitalise on the expected cyclical recovery of both the aerospace and front-end semicon sectors. Key risk would be a longer-than-expected recovery of the global semiconductor industry.
Analysts:
Jeremie Yap
jeremie.yap@maybank-ib.com
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com