Brokers' take

Tech manufacturing services | Overweight CIMB Research, July 4

OF the eight tech manufacturing services stocks that we cover, three can be classified as electronic manufacturing services providers, two as suppliers for companies in the semiconductor industry, two are in the plastic injection moulding business and one in the printed circuit board (PCB) drilling space.

For these stocks, further re-rating could come from earnings outperformance, and better-than-expected long-term prospects. Memtech, Valuetronics and Venture have room to surprise investors with possible new order wins or more orders from existing customers. AEM could also deliver positive earnings surprises as operating efficiencies improve and production shifts to lower-cost Penang in H2 2017.