SAM Engineering & Equipment (M) Bhd (SAMEE) has been downgraded to 'Hold' from 'Buy' at HLIB Research with an unchanged 52-week target price of RM4.92. The counter dropped 5% to RM4.85 from RM5.09 yesterday.
"SAMEE foresees short term soft demand in equipment business due to broad base inventory adjustments and underutilisation," it said in a note released today.
It noted that air travel has recovered to almost pre-pandemic levels with revenue passenger kilometers (RPKs) and available seat kilometers (ASK) back 94% and 98% of pre-Covid levels.
It said 2023 was a record year for commercial aircraft in terms of aircraft deliveries, net new orders and order backlog.
The revenue contribution from B737 Max family products is less than 5%. The consolidation of Aviatron is projected to elevate aerospace contribution from 23% to 35%.
On the outlook for SAMEE, HLIB Research said it likes the counter given its exposure in both the ultra-fast-growing aerospace and semiconductor industries, which it deemed both to be long-term complementary.
"SAMEE is a highly rare secular growth stock and we are positive for the following reasons: (i) the global semiconductor industry is gradually recovering from the inventory correction cycle; and (ii) aerospace is turning around strongly as global air passenger travel has recovered to >99% of pre-pandemic level. While the group's Thailand expansion will take time before breaking-even, we are encouraged by the narrowing losses in each subsequent quarter," it said.
HLIB Research将SAM Engineering & Equipment (M) Bhd(SAMEE)的评级从 "买入 "下调至 "持有",52周目标价维持在4.92令吉。该股从昨天的5.09令吉下跌了5%,至4.85令吉。
该公司在今天发布的一份报告中表示:“由于广泛的基础库存调整和利用率不足,SAMEE预计,设备业务的短期需求将疲软。”
它指出,航空旅行已恢复到几乎疫情前的水平,收入乘客里程(RPK)和可用座位里程(ASK)回落了COVID前水平的94%和98%。
它说,就飞机交付量、净新订单和订单积压而言,2023年是商用飞机创纪录的一年。
B737 Max系列产品的收入贡献不到5%。预计Aviatron的整合将使航空业的贡献从23%提高到35%。
关于SAMEE的前景,HLIB Research表示,它喜欢该柜台,因为它在超快速增长的航空航天和半导体行业都有曝光率,它认为这两个行业是长期互补的。
“SAMEE是一种非常罕见的长期增长股票,我们持乐观态度,原因如下:(i)全球半导体行业正在逐渐从库存修正周期中恢复过来;(ii)随着全球航空旅客旅行恢复到疫情前水平的99%以上,航空航天业正在强劲转机。它说,尽管该集团在泰国的扩张需要一段时间才能实现收支平衡,但我们对随后每个季度的亏损缩小感到鼓舞。”