STOCKS NEWS MALAYSIA-Affin cuts target price on Unisem

Thu Nov 8, 2012 9:22pm EST

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Affin Investment Bank cut its target price on Unisem Berhad to 1.36 ringgit from 1.38 ringgit after the semiconductor firm's third-quarter results came in slightly below the bank's expectations.

Affin said a slower-than-expected recovery in global demand for Unisem products could pose a risk to its 'add' call on the stock.

Unisem returned to the black after registering losses in the three previous quarters. The company reported a 58 percent rise in net profit for the third quarter compared with a year earlier, helped by lower operating expenses, higher foreign exchange gains and changes in product mix, it said in a Bursa Malaysia filing on Thursday.

Affin attributed the turnaround to, among others, "further cost discipline by the group" and "improvement in product mix."

At 1017 (0217 GMT), Unisem was up 2.63 percent at 0.975 ringgit, while the benchmark composite index was down 0.26 percent at 1,636.84 points.

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(Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by Subhranshu Sahu; siva.sithraputhran@thomsonreuters.com)

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