Although RHB Investment Bank Bhd (RHB Research) and Maybank Investment Bank Bhd (Maybank IB) have provided differing outlooks for Globetronics Technology Bhd, both research houses have maintained their respective stock call for Globetronics with RHB Research maintained its TRADING BUY call with a target price of 70 sen, representing a 27.3% upside from its current price of 55 sen, while, Maybank IB maintaining HOLD with a revised TP of 54 sen.
Both analysts highlighted that Globetronics' 9M24 performance was below market expectations, with RHB Research noting the company's core earnings of RM12 million were in line with its forecasts, but missed the Street's estimates. Maybank IB pointed out that the company's results for the third quarter financial year of 2025 (3QFY25) fell short due to weaker volume loading and an unrealised foreign exchange (forex) loss.
Nevertheless, RHB Research maintained a positive outlook for Globetronics in 4Q25, expecting favourable forex trends and stable loadings to boost performance. The company's recent agreements with ChipMos Technologies Inc and POET Technologies could serve as growth catalysts into FY25. RHB Research sees these developments as pivotal in driving the company's medium-term growth, although the research house cautioned that structural uncertainties remain.
Meanwhile, Maybank IB adjusted its earnings forecasts, raising estimates for FY25E but reducing projections for FY26E and FY27E, citing margin compression and weaker-than-expected demand from key customers as major concerns.
Despite the disappointing financial results, Globetronics secured a second new customer in November, POET Technologies, which is expected to bring in additional revenue from its optical interposer modules for datacomms and artificial intelligence applications. This new deal, worth an estimated RM145 million, could help the company recover, although both analysts remain cautious about the long-term outlook due to risks such as forex volatility and customer dependency.
