(GTB MK/BUY/RM6.40/Target: RM7.50)

We reiterate our positive view on Globetronics. On top of its strong earnings prospects (CAGR of 79% in 2016-19) from new light and gesture sensors which just started mass production in June, there are opportunities to loop in more new products which would support earnings upside in 2018-19. Leveraging on its strong business relationship with its fast-growing sensor segment client, Globetronics is well positioned to benefit from the ongoing increase in sensor content for smartphone applications. Maintain BUY with a higher target price of RM7.50.

Source: UOB Kay Hian Research - 6 Sept 2017