Analyst: Jonathan Ng
Tech stocks - good earnings as expected
Avi-Tech is a Singapore semi-con company serving global companies such as Infineon Technologies.
• Singapore tech companies have reported good first quarter earnings as we had earlier anticipated.
• Yesterday, Hisaka was the latest tech Company we covered that reported a 368% yoy increase in sales to S$36.6m for 1HFY10 (S$7.8m in 1HFY09) while net profit turnaround to S$4.2m versus a loss of S$0.9m a year ago.
Global tech companies reporting good news too
Infineon, Europe’s 2nd largest chip maker, raised its 2010 outlook for a second time this year to high 30% growth from January’s 20+% growth. Margin forecast was also upped to more than 19% from high single digit previously.
• UMC, the world’s second largest foundry commented that 2H10 outlook was robust as the corporate IT upgrade cycle is expected togather pace in the second half.
• TSMC, Texas Instruments, ST Microelectronics have also revised upwards their 2010 outlook due to stronger than expected demand from corporates and consumers.
Can we profit from these?
Buy ahead of results. We believe a workable trading strategy wouldbe to buy ahead of the results release.
• What’s coming up? The table below shows what are the stocks that traders could look at.
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