AsiaPacificEquityResearch05September2019NotesfromtheRoad:MYTechImpactoftradetensions-feedbackfromdiscussionswithMalaysianTechcompaniesASEANTMTRanjanSharma,CFAAC(65)6882-1303ranjan.x.sharma@jpmorgan.comBloombergJPMARSHARMAJ.P.MorganSecuritiesSingaporePrivateLimitedPranujShah(91-22)6157-3035pranuj.shah@jpmorgan.comJ.P.MorganIndiaPrivateLimitedGokulHariharan(852)2800-8564gokul.hariharan@jpmorgan.comJ.P.MorganSecurities(AsiaPacific)LimitedHoyKitMak(60-3)2718-0713hoykit.mak@jpmorgan.comJPMorganSecurities(Malaysia)Sdn.Bhd.(18146-X)Seepage31foranalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.www.jpmorganmarkets.comFollowingourBigDataanalysisindicatingMalaysiaasasupplychainshiftbeneficiary,wemetfiveMalaysiantechcompaniestounderstandtheirbusinessoutlookandviewsonsupplychainshifts.Companiesareindicatingasubstantialjumpinqueriestoincreaseproduction–oneCEOrecentlyhosted80corporatesonavisittoBatuKawan,Penang.Somecompanieshavedisclosedwinningnewcustomers(eg.VSIIndustries,Pentamaster)whilesomecompanieshavebeennegativelyimpactedbutarestillcontinuinginvestments(Unisem).Thecompaniesareselectivelyexposedtothe5Gtheme–Inaricouldbeamajorbeneficiary.BigDataanalysisshowsMalaysiaisamongstthebiggestbeneficiariesofsupplychainshifts.OurBigDataanalysisofsupplychainshiftsbasedon>4ktranscriptsindicatesthat:1)SEAsiabenefitsoverotherregionsfromsupplychainshifts;2)Vietnam/MalaysiaarethebiggestbeneficiariesinSEAsia;and3)SEAsiaisseeingincreasedactivity,butthebulkofrelocationisyettocome.1)Inari(N)couldbeabeneficiaryof5G;nonewmajorcustomersyet.BlockBoftheBatuKawanexpansionhasrecentlybeenqualifiedbyBroadcom.Inaricouldbeamajorbeneficiaryof5Gadoption-JPM’sglobaltechteamhasrecentlyraisedthe5Gsmartpho...
