We expect local tech companies, particularly those with high sales exposure to US smartphone brands, to deliver a strong set of report cards from 2Q17 onwards. This could include upstream testing equipment players such as MMSV and Elsoft in 2Q17, followed by OSAT vendors from 2H17. However, given the sharp share price run-up within the sector, we advocate investors stick to companies with multi-year growth legs while the near-term good results provides trading opportunities in small cap companies. Maintain OVERWEIGHT. Top pick: Globetronics.

Source: UOB Kay Hian Research - 10 Jul 2017