KUALA LUMPUR (Feb 26): CIMB IB Research has downgraded Unisem (M) Bhd to “Reduce” at RM3.09 with a lower target price of RM2.70 (from RM3.30) and said Unisem’s FY18 net profit came in 12% below house forecast, but in line with Bloomberg consensus at 99% of full-year forecast.

In a note Feb 25, the research house said Unisem projects low-single digit US dollar sales growth in FY19F, driven by new wafer bumping capacity expansion and microphone assembly rogramme.

“We cut our FY19-20F EPS by 12-19%.

“Downgrade to Reduce from Hold with a lower RM2.70 target price in view of the challenging outlook and rich valuation,” it said.