KUALA LUMPUR (Sept 10): Shares of Globetronics Technology Bhd (KL:GTRONIC) fell as much as 21.5 sen or 26.88% on Tuesday, resulting in the suspension of intraday short-selling on the counter.

At 3pm, shares of the outsourced semiconductor assembly and test firm traded at 59.5 sen, still down 20.5 sen from its Monday close of 80 sen, after touching a low of 58.5 sen earlier.

It is the second top active counter on Bursa Malaysia with a trading volume of 36 million shares, or eight times its 65-day average volume of 4.43 million shares.

At 59.5 sen per share, the stock had a market capitalisation of RM401.85 million.

Meanwhile, the Bursa Malaysia Technology Index was down 0.14%, while the Bursa Malaysia Small Cap Index was down 0.55%.

The sell-off comes at a time when more analysts are turning bearish on the counter, amid continued erosion of earnings seen in the last three years despite a boom in the semiconductor industry for the most part in the period.

The latest decline has brought Globetronic shares below its target prices, which averaged at RM1.15, according to Bloomberg.

Of the nine analysts covering the group, two had "sell" and "underperform" calls, six recommended "hold", and one has not rated the stock. The counter's target prices range between 97 sen by AmBank Research and RM1.22 by Nomura.

AmBank Research also slashed its earnings forecast for Globetronics “to factor in a slower-than-expected recovery in orders amid an anticipated slow-down in global economic growth”.

“Near-term outlook for its existing business remains lukewarm as management expects weak volume loading from key customers over the next two quarters.

“Factory utilisation rate is expected to remain below 70% for the years,” said the research house, which has a "hold" call on the counter.

While Globetronics management has set aggressive capex spending, contribution will only be reflected in the second half of 2025, AmBank Research said.

In the first half ended June 30, 2024 (1HFY2024), Globetronics' net profit slipped 3.69% to RM10 million or 1.48 sen per share from RM10.38 million or 1.55 sen per share. Revenue fell 10.8% to RM57.66 million from RM64.64 million.

https://www.theedgemarkets.com/node/726185