Technology Sector - RHB Invest 2020-11-27: Numbers To Remain Robust In 2021; Still OVERWEIGHT

Technology Sector - RHB Investment Research | SGinvestors.io VENTURE CORPORATION LIMITED (SGX:V03) FRENCKEN GROUP LIMITED (SGX:E28) FU YU CORPORATION LTD (SGX:F13)

Technology Sector - Numbers To Remain Robust In 2021; Still OVERWEIGHT

  • Maintain OVERWEIGHT on sector. We remain bullish on the technology sector – especially the semiconductor space, which has done well this year. We believe the sector’s solid performance will continue in 2021.
  • Meanwhile, the automotive sector is slowly recovering as well (as lockdowns resume across the world) – which should benefit many manufacturers.
  • Top Picks: Frencken, Fu Yu, and Venture Corp.



Semiconductor demand growth to remain strong moving into 2021.

  • According to SEMI, global sales of semiconductor manufacturing equipment by original equipment manufacturers should increase by 6% y-o-y to USD63.2bn in 2020, vs USD59.6bn in 2019. SEMI also expects the sector to log a record-high revenue of USD70bn in 2021, implying double-digit growth.
  • Foundry and logic spending, accounting for about half of total wafer fabrication equipment sales, will see a single-digit sales increase in 2020-2021F.
  • Spending on dynamic random access memory (DRAM) and NAND in 2020, which should surpass 2019 levels, is projected to grow by over 20% next year.


Twin growth drivers for Frencken Group (SGX:E28).



Fu Yu (SGX:F13): Stable and resilient.


Better quarters ahead for Venture Corp (SGX:V03)






Jarick Seet RHB Securities Research | https://www.rhbinvest.com.sg/ 2020-11-27
SGX Stock Analyst Report BUY MAINTAIN BUY 22.600 SAME 22.600
BUY MAINTAIN BUY 1.220 SAME 1.220
BUY MAINTAIN BUY 0.300 SAME 0.300



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