(GTB MK/BUY/RM5.97/Target: RM7.50)

Globetronics’ share price drop over the past two days was likely due to the absence of bundling of wireless headphones for its US end-client’s new OLED smartphone model. However, Globetronics’ order visibility remains intact and its primary growth driver is the new light sensor, of which’s prospects remain unchanged. The key earnings risk for Globetronics is consumers’ reception of the new smartphone models. Commercialisation of new sensors in 2018/19 remains a wild card. Maintain BUY with a target price of RM7.50.

Source: UOB Kay Hian Research - 15 Sept 2017