KUALA LUMPUR: RHB Research Institute said Unisem has reiterated its guidance of 10%-12% sequential revenue decline in 1Q11 due to seasonal factors.
It said on Tuesday, April 19 that Unisem believes the impact to the potential supply chain disruption from Japan is minimal. At worse, it could see a single digit or flat revenue growth in 2Q11 should delays in the supply chain drag volume loading to the 3Q11.
'Nonetheless, Unisem is optimistic of a substantial pick-up in the 2H11 mainly driven by: 1) higher volume loading from its Tier-1 customer; 2) strong demand for WLCSP and QFN; and 3) the pick-up in consumer spending in the US and EU,' it said.
RHB Research said going forward, Unisem sees stronger demand for outsourcing as there could be a change in the landscape of the global semiconductor industry. As Japan's semiconductor manufacturers look to rebuild, it is likely the emphasis would be put on infrastructure and R&D while reducing the dependence on in-house packaging capability, thereby benefitting third-party packaging, assembly and test companies.
It said that following news reports on concerns of a potential supply shortage of a key raw material, Unisem reiterated that it is not directly impacted as it mainly sources its raw materials locally as well as Taiwan and Korea.
Nonetheless, while Unisem highlighted that concern of supply shortages are mitigated, longer-than-expected plant closures of semiconductor vendors i.e. Sony and Toshiba could impact earnings as this could result in lower production of electronic devices.
'Fair value of RM2.65/share is unchanged based on 11x FY11 FD EPS. Maintain Outperform,' it said.
It said on Tuesday, April 19 that Unisem believes the impact to the potential supply chain disruption from Japan is minimal. At worse, it could see a single digit or flat revenue growth in 2Q11 should delays in the supply chain drag volume loading to the 3Q11.
'Nonetheless, Unisem is optimistic of a substantial pick-up in the 2H11 mainly driven by: 1) higher volume loading from its Tier-1 customer; 2) strong demand for WLCSP and QFN; and 3) the pick-up in consumer spending in the US and EU,' it said.
RHB Research said going forward, Unisem sees stronger demand for outsourcing as there could be a change in the landscape of the global semiconductor industry. As Japan's semiconductor manufacturers look to rebuild, it is likely the emphasis would be put on infrastructure and R&D while reducing the dependence on in-house packaging capability, thereby benefitting third-party packaging, assembly and test companies.
It said that following news reports on concerns of a potential supply shortage of a key raw material, Unisem reiterated that it is not directly impacted as it mainly sources its raw materials locally as well as Taiwan and Korea.
Nonetheless, while Unisem highlighted that concern of supply shortages are mitigated, longer-than-expected plant closures of semiconductor vendors i.e. Sony and Toshiba could impact earnings as this could result in lower production of electronic devices.
'Fair value of RM2.65/share is unchanged based on 11x FY11 FD EPS. Maintain Outperform,' it said.
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