Tech’s key theme in 2H18 revolves around connected cars

KUCHING: The technology sector’s key theme in the second half of 2018 (2H18) should revolve around connected cars, smart homes and automation, analysts predict in a sector report.

According to AmInvestment Bank Bhd (AmInvestment Bank), this paints a positive outlook for sensor and radio frequency ( RF) chip manufacturers, automated equipment manufacturers and companies looking to improve operational efficiencies through automation.

“In the smartphone segment, while sales volume is plateauing in developed markets, sensor and RF content continues to increase. Overall, earnings prospects are looking positive for local semiconductor companies,” the research firm said.

AmInvestment Bank noted that in 2H18, companies in the limelight are Inari Amertron Bhd ( Inari), Malaysian Pacific Industries Bhd (MPI), Unisem and Globetronics Technology Bhd given sensors and RF are imperatives in a connected world.

It further noted that prospects of ViTrox Corporation Bhd and Pentamaster Corporation Bhd are also exciting amid the rising adoption of automation.

“In Budget 2018, the government has announced that it will provide matching grants and capital allowances to support automation initiatives.

“Among the beneficiaries are Inari and MPI, which have expressed intentions to adopt automation next year. Inari has indicated that it intends to invest in automated optical inspection machines, which would cost circa US$ 1 million per unit. Meanwhile, MPI has said the group is exploring areas within its manufacturing processes to replace with automation and robotic equipment.”