OSK Technology Sector Stock Picks, May 2011



Tech

OSK have no buy calls among the semiconductor companies and HDD component manufacturers under their coverage.

Although share prices have largely retraced from respective peak valuation since 2009, OSK remain wary of potential earnings shortfall should Ringgit appreciation accelerates, potential component shortages insemiconductor supply chain materializes, or weak sentiment in the consumer PC marketprevails.

Hence, OSK maintain UNDERWEIGHT recommendation on the sector.

Below are the target prices/fair favue and ratings for selected technology stocks.

Stock Price (RM) Target (RM) Market Cap (RM million) Rating
MPI 4.99 4.75 1,047.3 Sell
Unisem 1.58 1.63 1,065.2 Neutral
JCY 0.62 0.585 1,267.8 Sell
Notion 2.08 2.12 321.5 Neutral
Engtek 1.75 1.73 214.3 Neutral


Source : OSK Research


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