SMT Jumps 9%, Maybank Expects Shifting to Megatrends Products Results in Higher Margins
Maybank recommended BUY on SMT with a TP at Bt8, seeing the shifting to megatrends products like Fiber Optics will boost margin.
The share price of Star Microelectronics (Thailand) Public Company Limited (SMT) rose ฿0.50/share or 8.85% to trade at ฿6.15/share with a trading value of 236 million baht as of 11:40 local time in Thailand on June 14, 2021.
Maybank Kim Eng has given a “BUY” recommendation on SMT with a target price at ฿8.00/share.
Maybank stated that SMT shifted to megatrends products like Fiber Optics with long product lifespan and aimed to provide systematic work (Box Build) rather than the original work that is components, will boost profit margins to hit a new high and expecting 2Q21 profit to grow QoQ and YoY, confirmed with booking exceeding more than 96% of the revenue target.
