KUALA LUMPUR (Feb 8): Affin Hwang Capital Research has maintained its “buy” rating on Globetronics Technology Bhd (Globe) at RM2 with a lower target price of RM2.55 (from RM3) and said Globe faces headwinds in its light-sensor business.

In a note today, the research house said although Globe’s end customer's products are seeing weaker demand, lower volumes in 1Q19 are looking seasonal, similar to last year's drop.

“We were, however, surprised by the softer timing-device business although bottom-line impact should be small.

“The automotive laser headlight is shaping up and should help offset some of the slack in the former.

“At 20% EPS growth, circa 6% yield, strong ROE and below mean PE multiples for 2019E, we reaffirm our Buy call,” it said.