GLOBETRONICS TECH­NOL­OGY BHD

The Star Malaysia - StarBiz - - Analyst Reports - By UOBKayHian Hold (main­tained) Tar­get price: RM2.30

GLOBETRONICS is de­vel­op­ing a number of new prod­ucts, some of which could be rerat­ing cat­a­lysts.

The more cer­tain new prod­ucts for 2019 would be the new gen­er­a­tion of light and ges­ture sen­sors, which could have en­hanced func­tion­al­ity and drive ad­di­tional sales vol­ume, apart from re­place­ment de­mand.

UOBKayHian said the growth driv­ers of the de­mand for ges­ture sen­sors could be its end-client’s launch of new wire­less ear­phone in 2019 and the strat­egy of bundling ex­ist­ing wire­less head­phones with 2019 smart­phone mod­els.

“Mean­while, the growth driver of light sen­sors still largely re­lies on whether there will be more smart­phone mod­els that fea­ture two light sen­sors per smart­phone, given its end-client’s rel­a­tively flat smart­phone sales.”

Be­yond the ex­ist­ing prod­ucts, the re­search house said Globetronics is work­ing on three other sen­sor-re­lated prod­ucts.

“First, Globetronics is de­vel­op­ing a hy­brid imag­ing sen­sor (for cam­era ap­pli­ca­tions) with its sen­sor client. This sen­sor is for its US smart­phone end-client. Com­mer­cial­i­sa­tion of this sen­sor is still un­clear (ei­ther 2019 or 2020) but it could be a key cat­a­lyst.

“Sec­ond, Globetronics is pro­duc­ing a small vol­ume of imag­ing sen­sors with its end-client, a Chi­nese An­droid phone maker.”

UOBKayHian said Globetronics ex­pects monthly pro­duc­tion vol­ume to in­crease to 500,000 to one mil­lion in the sec­ond half of 2019 from 50,000 units cur­rently, adding how­ever that this is un­likely to be a gamechanger.

“Third, Globetronics is work­ing with a po­ten­tial new EU cus­tomer on en­vi­ron­men­tal and bio sen­sors. If this were to ma­te­ri­alise, it would al­low Globetronics to di­ver­sify its cus­tomer base; ini­tial cap­i­tal ex­pen­di­ture is es­ti­mated at RM20mil.”

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