Technology Sector: R&D to take centre stage in FY19 Overweight

We maintain our OVERWEIGHT stance on the technology sector. We expect growth to stem from the automotive and cloud computing division which is anticipated to grow ahead of other categories. However, the growth will likely be moderated, owing to a slowdown in the heavily weighted communication segment.

One of the main reasons for the slowdown is the lack of breakthrough features in recent smartphone launches, which has lengthened the replacement cycle among consumers. With commercial rollouts of 5G connectivity to be seen only in 2020, we believe FY19 to be a year of research & development (R&D), with companies allocating more resources towards the innovation and adoption of the Internet of Things (IoT).

Others:

Mah Sing: A slew of new launches slated for 2019 Buy

ECONOMIC HIGHLIGHT

Malaysia: Economy likely to bottom out in 2Q2019

NEWS HIGHLIGHTS

MAHB: Bid to offload Indian airport stake fails

XiDeLang: Eyes double-digit revenue growth in FY19

XingHe: Seeks expansion via RM100mil aquaculture acquisition

Technology Secto: Apple cuts revenue forecast on weak China sales

Source: AmInvest Research - 3 Jan 2019