Technology Sector 03 (Dec 24 - Dec 27)

[winston]

Malaysia Tech: Still uneven, but opportunities remain

Maintain NEUTRAL

We expect the local semicon sector’s growth to skew towards AI/DC related demand, while legacy sector, automotive, would continue to face downside risks in 2026, despite recent signs of stabilisation.

We favour front-end–exposed names which offer a broader based proxy to AI growth given limited AI exposure at the back-end.

Our top tech BUYs are Frontken & Northeast.

Within software, we like ITMAX & Ramssol.

While we are cautious on EMS, we favour ATech. Maintain NEUTRAL on the tech sector.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/506049.pdf

[winston]

2026 outlook: Volatility, Validity, Value - Regional Technology

2026 is anticipated to further extend the semiconductor upcycle, with semiconductor revenue growth of 32.6%/12.6% in 2026/27

We foresee a longer memory cycle; prefer backend equipment makers and advanced packaging. Our pick: TSMC

Premiumisation and increasing adoption of foldables to drive consumer tech upside. We like: BYDE, Sunny Optical, Lenovo, Lens Tech

UMS and Frencken well positioned to benefit from semiconductor uptrend and firmer downstream recovery

Source: DBS

https://www.dbs.com/insightsdirect/land ... rtid=44098

[winston]

Metaverse is out, while AI does the laundry: CES 2026's biggest tech

Samsung demonstrated AI that can recognise the laundry you put in a washing machine and select the right programme.

LG showcased a humanoid robot that neatly folds dried clothes with the help of AI.

Bosch unveiled an AI-controlled hob that cooks steaks like a master chef.

Nvidia chief Jensen Huang shared the chipmaker’s ambitions to use AI to help power a fleet of robotaxis.

Lego unveiled a new interactive Smart Brick, which looks like a standard 2 × 4 Lego piece but is packed with miniaturised tech, including a battery, sensors for light, acceleration and sound, a speaker and a tiny synthesiser.

Bosch's engineers can simulate entire plants in real time, train robots virtually and solve problems before the real facility is built.

Manufacturers, mainly from China, are pursuing different strategies to notch up sales with their "smart glasses".

Source: Tribune News Service

https://www.thestar.com.my/tech/tech-ne ... ggest-tech

[winston]

vested in 3033

China’s worst tech earnings in three years signal tough comeback

Earnings for the 30-member Hang Seng Tech Index fell 30 per cent in the three months through December 2025, compared with a year ago.

That’s the worst performance since 2022, when profits were hurt by regulations on the tech sector and a weak recovery in consumer spending following the Covid-19 pandemic.

The index of Hong Kong-listed tech firms is down 14 per cent this year and on the verge of wiping out all its gains since the DeepSeek breakthrough.

Analysts’ forward estimated earnings per share is down 9 per cent in March, as hyperscalers like Tencent Holdings and Alibaba Group Holding reveal hits from massive AI spending.

“Continued price wars in the quick commerce sector, the rising cost of memory chips, deteriorating capex and monetisation balance, and broader demand and margin questions surrounding the Iran shock are key issues for investors” .

Source: Reuters

https://www.businesstimes.com.sg/compan ... h-comeback