KUALA LUMPUR (Oct 30): Globetronics Technology Bhd's share price fell as much as 13 sen or 5.91% to RM2.07 in morning trades today after the semiconductor manufacturer reported yesterday an on-year drop in third quarter and cumulative nine-month net profit.

At 9:53am today, Globetronics, which was traded among Bursa Malaysia top decliners, saw 2.58 million shares transacted.

Yesterday, Globetronics said net profit fell to RM18.94 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM23.6 million a year earlier. For 9MFY19, Globetronics said cumulative net profit dropped to RM30.18 million from RM48.13 million a year earlier.

Today, Affin Hwang Investment Bank Bhd analyst Kevin Low wrote in a note that Globetronics 9MFY19 core profit of RM30 million was below expectations.

"We cut 2019-20E EPS by 3%-11% to reflect the earnings disappointment. However, we maintain our hold rating after raising our target PE multiple to 20x from 16x to reflect the improved sentiment on the sector," Low said.

Accordingly, Affin Hwang lifted its Globetronics share target price (TP) to RM2.10 from RM1.74, he said.

AllianceDBS Research Sdn Bhd analyst Toh Woo Kim wrote in a note today that the research house maintained its hold call for Globetronics shares with an unchanged TP of RM1.80.

"We believe the market is looking ahead to an earnings recovery in FY20 for Globetronics, as current expectations are pointing towards higher volume for its sensor division in 2020 (new generation wireless earbuds, better smartphone cycle)," Toh said.