Equity Analysis /
China

CN : Technology - Others - Yoy growth in Jan–Feb moderated in Mar 2021

    Mark Po
    Mark Po

    Research Analyst

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    CGS-CIMB
    13 April 2021
    Published byCGS-CIMB

    On average, shares of HK-listed hardware names underperformed their global peers on a one-month basis, dragged down mainly by telecom equipment names. Taiwan-listed technology names reported their Mar 2021 turnover. In general, we saw the yoy growth rate moderate in Mar 2021 after a strong start in Jan–Feb 2021. The impact of the shortage of upstream components is spreading, and concerns about constraints on shipments of downstream products may trigger selling pressure. TFT-LCD panel suppliers are expected to remain hot. Semi equipment, especially OSAT equipment, may benefit from a CAPEX hike by industry players. The Android camp is expected to outperform the Apple camp in the short term. Smart mobility development is expected to be focus of the market for the remainder of 2021. TSMC’s 1Q21 results call on 15 Apr and US government policy to solve the IC shortage issue are key short-term catalysts.