THE tech sector is one of the few that have persevered through the Covid-19 lockdown fairly well, and is looking to be a good play moving forward.
“Moving forward, the sector will be getting better. The advent of 5G in Malaysia, as well as the move towards digital and the Internet-of-Things (IoT), should see the tech sector grow stronger,” LeInves PLT chief investment/research officer William Ng told FocusM.
Rakuten Trade vice president of research Vincent Lau agrees that the tech sector looks strong moving forward, noting that it is currently at an all time high, with China bullish about the sector as well.
“The glove and tech sectors are the current strong sectors. For the tech sector, digitalisation will continue, irrespective of the Covid-19 pandemic,” said Lau.
For investors, Ng pointed out that research has to be done, as there are too many tech companies in Malaysia that claim to be related to the advancement of matters such as IoT, artificial intelligence (AI), or 5G.
“Investors need to research and pick the companies they would invest in for the tech sector with care, be they hardware producers, or software or system providers,” said Ng, who personally believes companies that provide products or components to IoT, such as KESM Industries Bhd, or smart cars, such as D&O Green Technologies Bhd, would fare well.
Lau believes that it is a matter of looking for the laggards, as it would be a thematic play to invest in the tech sector.
“It is just a matter of valuation. Look for the laggards, basically those trading below 30x price to earnings,” Lau told FocusM, adding that the tech sector looks to be a strong play moving forward. – July 6, 2020
