01/01 23:32
Unisem, Malaysian Chipmaker Shares May Gain in 2002 (Update1)
By David Yong
quote.bloomberg.com
Kuala Lumpur, Jan. 2 (Bloomberg) -- Unisem Bhd. and other Malaysian chipmakers, whose shares posted their biggest gains in the last quarter of 2001, may rise this year as a rebound in U.S. personal computer sales and chip prices boosts demand.
``Technology stocks will do well over six to 12 months,'' said Razali Haron, who is buying chipmakers for his 700 million ringgit ($184 million) fund at ASM Asset Management Sdn. ``As electronics exports recover later this year, so will earnings of computer-related companies.''
The Semiconductor Industry Association expects the global semiconductor business to expand 6.3 percent in 2002 from an expected 31 percent drop to $141 billion in 2001. The group said it expects sales to rise 21 percent in each of the following two years, reaching $218 billion in 2004. Today, Hynix Semiconductor Inc. of Korea, the third-largest chipmaker, raised prices for the third time in less than a month.
``The fourth quarter is a blessing because orders are coming back as inventory dries up,'' said John Chia, managing director of Unisem, the country's second-largest chip testing and assembly company. ``January is a seasonally low-demand period, so February will be critical'' for a sustained recovery in the industry.
In anticipation of a rebound, Unisem shares have risen 39 percent to 9.50 ringgit since October and its bigger rival Malaysian Pacific Industries Bhd. gained 50 percent to 15.70 ringgit, making them among the 10 largest gainers in the fourth quarter. The 100-stock Composite Index rose 3.8 percent.
Investors say it's time to buy chip stocks to ride the country's expected economic recovery in 2002.
Malaysia expects the economy to expand by 5 percent to 6 percent in 2002, as it spends more to raise domestic consumption and forecasts exports, including semiconductors and other electronic goods, to rise 6 percent.
Earnings Upgrades
Unisem and its bigger rival Malaysian Pacific Industries Bhd., or MPI, have lost money since June, as they filled fewer orders from Nokia Oyj, Ericsson AB, Infineon AG and Linear Technology Corp.
The electronic makers' woes are also one reason why the Malaysian economy shrank 1.3 percent in the third quarter, its first contraction in more than two years. |
