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
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.
(Reporting by Siva Sithraputhran in Kuala Lumpur; Editing by
Subhranshu Sahu; firstname.lastname@example.org)