Technology shares up after 22nd consecutive y-o-y growth in global semicon sales

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KUALA LUMPUR (Apr 8): Semiconductor companies saw its shares rise on positive year-on-year (y-o-y) growth in February 2015 global semiconductor sales, extending its 20-month y-o-y growth trajectory.

At 10.30am, Malaysian Pacific Industries Bhd (fundamental: 1.8, valuation: 2) shares rose 22 sen or 3.25% to RM6.98, with 40,100 shares traded.

Unisem Bhd (fundamental: 1.25; valuation: 0.6) shares rose 5 sen or 2.26% to RM2.26, with 1.35 million shares done.

Shares of Globetronics Technology Bhd (fundamental: 3; valuation: 1.7) increased 4 sen or 0.73% to RM5.51, with 56,100 shares done.

According to statement by United States organisation Semiconductor Industry Association (SIA) on its website, global semiconductor sales for February 2015 were registered at US$27.8 billion, an increase of 6.7% from February 2014.

The growth in sales were largely spurred by demand for electronic goods in the Americas and Asia Pacific regions, whereby sales increased by 17.1% and 7.6% respectively compared to February 2014.

SIA president and chief executive officer John Neuffer said the growth in sales in February 2015 extends the sector’s y-o-y growth trajectory for 22 consecutive months.

“Sales of dynamic random-access memory (DRAM) and analog products were particularly strong, notching double-digit growth over last February, and the Americas market achieved its largest year-to-year sales increase in 12 months,” he said.

However, MIDF Amanah Investment Bank Bhd said in a report today that y-o-y global semiconductor sales in February 2015 decelerated, indicating a seasonal decline whereby sales growth in the semiconductor sector tends to dip in the first two months of the year.

The research firm said that sales had grown by more than 7% y-o-y for the past 14 consecutive months, peaking at 12.1% y-o-y in February 2014.

However, the research firm expects demand for semiconductor products to remain robust in the foreseeable term and projects higher sales this year and next year, underpinned by demand from the automotive and communications segments.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)