瑞银-东盟科技：东盟科技供应链势头改善-ASEAN Tech Improving momentum for ASEAN tech supply chain-20260313

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GlobalResearch

13March2026

ASEANTech

ImprovingmomentumforASEANtechsupplychain

KeyfindingsfromtheSoutheastAsialegof1Q26UBSAPACTechTour

Wemetwith11companiesinSingaporeandMalaysiaaspartofour1Q26UBSAPACTechTour(seeFigure1forthelistofcompanies).Thefeedbackwegatheredwasgenerallypositive,wherewenotedthat:1)front-endWFEsupplychainisseeingimprovingdemandmomentumascomparedtoaquarterago,partlydrivenbypushforcontentlocalizationinSoutheastAsia;2)back-endSPEmakersarealsoseeingdemandpull-inandstrongordervisibilityof6monthsormore,drivenbyincreasingproductcomplexityanddemandforhigh-throughputtesters;and3)positiveoutlookforcapitalgoods,semiconductor-relatedengineeringservicesandback-endmanufacturingareprimarilydrivenbydemandrelatedtoAIHPC,memory,andtoalesserextenttheautomotivesector.SeeourtakeawaysfromeachcompanymeetingonPages2-9.

Hightideliftsallboats;albeitsomesignsofcapacitytightness

FortheWFEandback-endSPEsupplychain,mostoftheequipmentmakerswemethighlightedrobustordervisibilityextendingthroughatleastthefirsthalfof2026,leadingthemtoprojectstrongdouble-digitYoYtoplinegrowthfor1H26.ThisalignswithUBS'positiveviewsonsemicapex,whereweforecastoverallsemicapexgrowthtoacceleratefrom+13%in2025to29%in2026E.Withrobustdemandoutlook,wenotedthatequipmentmakersaretypicallylessconcernedabouttheimpactoftheweakeningUSDollaronprofitmarginscomparedtotheOSATs,thoughtheexecutionofcostinflationpass-throughcouldfacesomedelays.WealsoobservedthatlaborandmanufacturingfloorspaceareincreasinglybecomingconstraintsforthesupplychaininPenang,withsomecompaniesoperatingatnearfullcapacityandacceleratingexpansionplans.Ontheotherhand,wealsonotedthatfront-endfacilitiesbuild-outsaswellasdatacentercapacityroll-outsinSoutheastAsiaaregainingmomentum,contributingtobetteroutlooksforcompaniessuchasKelingtonandGreatech.

OurpreferenceswithinASEAN

KelingtonisourmostpreferredwithinourASEANTechcoverage,whichweseeitasbeneficiaryofmemorycapacityexpansion,initiativestostrengthenchipsovereignty,aswellassemiback-endsupplychain'sdiversificationefforts.WealsohaveBuyratingsonFrontken,GreatechandVitrox;andaNeutralratingonInari.

Figure1:ASEANtechcompanieswehostedduringour2026APACTechTour

Equities

AsiaPacificEx.JapanTechnology

JosephKoh

Analyst

joseph.koh@

+603-27811182

RandyAbrams

Analyst

randy.abrams@

+886-2-87227338

NicolasGaudois

Analyst

nicolas.gaudois@

+65-64955148

Company

RIC

Rating

PT(LC)

Price

(LC)

MV(US$bn)

%YTD

PE(x)

Earningsgrowth

ROE(%)

26E

27E

26E

27E

26E

27E

KelingtonGroupBhd

KELG.KL

Buy

6.30

5.05

1,015

-3

23.2

19.7

35%

11%

25.5

24.5

FrontkenCorporationBhd

FRKN.KL

Buy

5.20

3.81

1,616

-9

33.0

28.5

14%

14%

17.9

17.8

CSEGlobalLtd

CSES.SI

1.29

734

31

20.1

17.2

33%

25%

15.7

17.5

InariAmertronBhd

INAR.KL

Neutral

1.40

1.27

1,233

-24

21.6

18.7

3%

17%

8.4

9.7

UMSIntegrationLtd

UMSI.SI

1.53

1,068

35

24.1

21.6

32%

13%

12.8

14.2

UWCBhd

UWCB.KL

4.05

1,140

-2

34.6

26.9

79%

30%

19.7

21.5

ViTroxCorporationBhd

VTRX.KL

Buy

4.53

4.39

2,120

10

42.3

35.5

59%

17%

16.4

16.7

MITechnovationBhd

MITE.KL

2.99

686

4

22.0

19.2

23%

15%

10.8

11.1

FrenckenGroupLtd

FREN.SI

2.03

682

47

19.7

17.3

14%

15%

8.8

9.4

AEMHoldingsLtd

AEM.SI

3.29

820

91

29.8

22.0

386%

25%

7.1

8.4

Source:LSEG,UBSestimates.Note:Dataasof10March2026.

ThisreporthasbeenpreparedbyUBSSecuritiesMalaysiaSdnBhd..ANALYSTCERTIFICATIONANDREQUIREDDISCLOSURES,includinginformationontheQuantitativeResearchReviewpublishedbyUBS,beginonpage11.UBSdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.

【价值目录】网整理：

ASEANTech13March2026ab2

ASEANTechUBSResearch

SEMI-relatedservicesandengineeringsolutions

FrontkenCorporation(Buy,PT:RM5.20)

Background:Frontkenisaserviceproviderofadvancedprecisioncleaningandsurfacetreatmentforsemiconductorprocesschamberparts,withpresenceinTaiwan,SingaporeandMalaysia.ItalsoprovidesrepairandmaintenanceservicesfortheoilandgasindustryinSoutheastAsia.

Meetingpresenters:Mr.NgWaiPin(Nicholas)-Chairman/CEO;Dr.TayKiangMeng(Benz)-ExecutiveDirector,ChiefScientist;Mr.WongCheeWai-CFO;Ms.JoleneChay-InvestorRelations

Keytakeaways:

●Growthdrivenbyadvancednodesandefficiencygains.Frontkenisconfidentofdelivering20-25%bottomlinegrowthin2026(UBSe:20%),notingthatitskeyfoundrycustomer'sadvancednodeproductionrampisaheadofitsinitialprojections.ManagementalsohighlightedthatcleaningintensityforN3processes/toolsisanotablestepupfromN5,relativetotheintensityincreasebetweenN5andN7.Frontken'sprofitmargincouldimprovealongwithprocessenhancements,whichleadtofastercleaningturnaroundtimes.

●Competitiveedgefrommetrologyandprocessknow-how.Frontken'sChiefScientist,Dr.BenzTay,highlightedthatFrontken'sWFEcleaningprocesses,especiallyfortoolsusedinadvancednodeprocesses,requireextensivemetrologytoolingandknow-how,withdatacollectionbeingcrucialindeterminingthelevelofcontamination(orcleanliness)aswellasthecriticaldimensionsoftheWFEtools.

●PotentialexpansionintheUS.ManagementreiteratedthatM&Adiscussionsremaininprogress.WhilegreenfieldexpansionintotheUSwouldbealesspreferredmethod,managementnotedthatsuchaninvestmentwouldrequireUS$80-100mcapital.

KelingtonGroup(Buy,PT:RM6.30)

Background:Kelingtonisanengineeringoutfitwhichspecialisesinultra-highpurity(UHP)gasandchemicaldeliverysystemsusedinsemiconductormanufacturingfacilities,aswellasprocessengineering,cleanroomconstructionandgeneralcivilconstruction.Itisalsoinvolvedinmanufacturingandtradingofspecialtygasthroughitswholly-ownedsubsidiaryAceGases.

Meetingpresenters:Mr.GanHungKeng(Raymond)-ExecutiveChairman;Mr.LimSengChuan-CEO;Mr.OngWengLeong(Steven)-COO.

Keytakeaways:

●Opportunitiesemergingfrommemoryfabs.Kelingtonanticipatesnewsizeabletenderopportunitiesfromnewmemorycapacitybuild-outinSingaporeaswellasinJapan,ofwhichsomeoftheprojectawardscouldbemorebackloadedin2H26.Seeourrecentratingupgradereporthere.GivenKelington'sestablishedtrackrecordwithselectedmemoryplayers,managementisconfidentofKelington'sprobabilityofsecuringnewUHPprojectsfromtheseupcomingmemoryfabs.

●Ontrackfordouble-digitgrowth.Managementistargetingtoachieveadouble-digitbottomlinegrowthin2026(UBSe:20%),afterrecordinga13%increaseinprojectwinsin2025.

ASEANTech13March2026ab3

jV8VnWeXqVxU8ZxUfW8O9R6MoMnNmOoQlOrRpMjMoPnO6MnMmQMYnQwOuOnNmP

SEMI-relatedservicesandengineeringsolutions

CSEGlobal(non-rated)

Background:CSEGlobalisanengineeringoutfitspecialisinginsystemintegration,withexposurestodatacentresandLNGsectorthroughitsElectrificationdivision(~50%ofrevenue);communication(30%ofrevenue)andautomation.Thecompanyderives~70%ofitsrevenuefromtheUSmarket.

Meetingpresenter:Mr.LimBoonKheng-CEO

Keytakeaways:

●DCrevenuerampontrack.CSEhasseenitsprimaryCSPcustomer(CustomerA)expeditingitsdatacentre(DC)capacityroll-out,withthemajorityofthenewadditionsbeingAIDCs.Torecap,CSEtook2-3yearstoqualifyforthesupplyofswitchgearsandotherredundancyequipmenttoCustomerA,leveragingoncomponentsuppliesfromthelikesofABBandSiemens,andithasaUS$1.5bnopenorderfromthecustomertosupplythispowerequipmentoverthenext5years.DCsmadeup10%ofCSE'sgrouprevenuein2025(partofthe50%contributionfromElectrificationdivision).Withitsrecentacquisitionofa72-acrelandinTexas,CSE'sdedicatedcapacityforCustomerAwillalsorampfrom70ksqftto240ksqft.

●Transitioningto800VDC.ManagementnotedthatCustomerA'sDCsintheUSareshiftingto800VDC,thoughwenotedthatCSE's800Vswitchgearscouldstillbeinthequalificationstage.Meanwhile,managementalsoseemoreequipmentfit-upopportunitiesarisingfromotherDChyperscalersinMalaysia,suggestingthatDCcapacitypipelineinMalaysiawilleventuallycomeonstream,thoughtheynotedthatitskeycustomer'sDCprojectsinMalaysiacouldstillbecateredforconventionalcloudusage.

●Steady-statefornon-DCexposures.Wenotedthat20-30%ofCSE'srevenue(non-DC)isrecurringinnature.CSE'scriticalcommunicationdivisionhasyettoseemeaningfulorderupticksincetherecentescalationingeopoliticstensions,notingthatitisnotinvolvedinairwaycommunicationinfrastructures.

WFE-Precisionmachining&moduleassembly

FrenckenGroup(non-rated)

Background:Frenckenwasfoundedin1947andcurrentlyhasmanufacturingpresencein18sitesacrossEurope,AsiaandtheUS.Mechatronicsandintegratedmanufacturing(IMS)areFrencken'smaintrades,whereithasextensiveexperienceinproductindustrialisation,highprecisionmachining,integratedmoduleassembly,aswellasadvancedmaterialhandling.Frencken'sWFEexposurescoverlithography,etch,depositionandback-endprocesses.In2025,semiWFErevenuemadeup49%ofFrencken'sgrouprevenue,whereastheremainingwasmadeupofLifeSciences(19%),Medical(15%),Automotive(7%),amongothers.

Meetingpresenters:Mr.DennisAu-GroupPresident;Ms.LisaHeng-Investorrelations

Keytakeaways:

●PositiveonWFEoutlookin2026despiteanuneventrajectory.FrenckenremainsoptimisticaboutWFEdemand,butcautionedthatitssemiWFErevenuemaybemoremutedinthenear-term.ItsmechatronicsdivisioninEuropedeliveredleading-edgelithography-relatedmodulestokeycustomerintherecentquartersin2025,whichwillbefollowedbyrepairandupgradecycle.Hence,managementexpectskeycustomer'sordermomentumtopickuponlyin2H26,likelydrivenmorebymaturedlithography-relatedmodules.MeanwhileinAsiawhereFrenckenhasawiderWFEcustomerbase,managementhighlightedstrongordermomentumandnotabledrawdownincustomers'inventorylevels,resultinginFrencken'sAsiaWFErevenuesurpassingthatofEurope.

ASEANTech13March2026ab4

WFE-Precisionmachining&moduleassembly

UWC(non-rated)

Background:UWCisinvolvedinthemanufacturingandassemblyofhigh-precisioncomponentsandmodulesforbothfront-endandback-endWFEcustomers.ItsmanufacturingpresenceisprimarilyinPenang,Malaysia.UWCderives~90%ofitsrevenuefromthesupplyofsemiconductorequipments/modules,ofwhichfront-endWFEmakesup~40%ofgrouprevenuewhereasback-endSPEmakesup50%,withtheremainingfromlifescienceandautomotivesectors.

Meetingpresenter:Mr.MatinNg-DeputyCEO

Keytakeaways:

●Demandpull-infromfront-endWFEcustomers.UWC'smanagementhighlightedthattheyobservedorderpull-infromfront-endWFEcustomers,notingthatsequentialgrowthinfront-endWFEordersmaysurpassback-endSPEinthenearterm.WeunderstandthatUWCiscurrentlyengagedinthefabricationandassemblyofgasandmechanicalmodulesthatareintegralcomponentsofdepositionequipment.Itsprimaryfront-endWFEcustomeraccountsfor~35%ofUWC'sgrouprevenue,whilemanagementalsoexpectsincreasingordersfromthecompetitorofitskeyfront-endWFEcustomerin2H26.

●Back-endtesterproductionrampontrack.UWC'sback-endSPErevenueismostlydrivenbyitskeyback-endcustomer(35%ofrevenue),anditiscurrentlyproducing20unitsofback-endtestersperweek,animprovementfrom15unitsperweekseeninlate-2025.WenotedthatUWCcurrentlyhasaproductioncapacitytoproduceupto25unitsofback-endtestersperweek.Furthermore,UWCiscurrentlyinvolvedintheprototypingofnew-generationtesterswiththiscustomeralongwithaUS-basedfablesscompany,andsuccessfulqualification(potentiallyinQ2orQ326)couldpotentiallyleadtoanotableincreaseinweeklyorders.Separately,demandforback-endtestersfromitsIDMcustomerisalsoimprovingandcouldseenotableincreaseinQ226,andmanagementhighlightedthatthisIDMcustomerisprocuringequipmentthroughanMNCEMScompany.

●Capacityutilisationseemedelevated,asUWC'sproductionfloorappearstobeoperatingatfullcapacityduringourvisit.WefoundthatUWCiscurrentlyoperatingona6-9weekorderleadtime,alongsideaRM200m+orderbacklogwhichprovidesthem~6monthsofordervisibility.AlthoughUWChasbeengrowingitsproductioncapacities,managementexpectsadditionalCNCmachinestobedeliveredin2H26,andtheyalsohaveplanstoincreasemoduleassemblyfloorspaceby30-35%throughexpandingtheir7thfacilityinPenang.Theadditionalfloorspacewillbeusedtoaccommodatenewordersfromtheirnewfront-endWFEcustomer.Whilelabouravailabilityremainsachallenge,managementhighlightedtheirabilitytorecruitworkersfromIndiatoaddresstheirworkforcerequirements.

ASEANTech13March2026ab5

WFE-Precisionmachining&moduleassembly

UMSIntegration(non-rated)

Background:UMSisprimarilyinvolvedinthemanufacturingandassemblyofhigh-precisioncomponentsandintegratedmodulesforfront-endWFEcustomers.IthasmanufacturingpresenceinbothSingaporeandPenang,Malaysia.UMSderives86%ofitsrevenuefromsemiWFE,withtheremainingbeingcontributedbyitsaerospace(~10%)anddistributiondivisions.

Meetingpresenters:Mr.StanleyLoh-ExecutiveDirector;Ms.ThamMoonYee-Investorrelations

Keytakeaways:

●Keycustomer'sorderoutlookshowsimprovement.UMSindicatedthatordermomentumfromitsprimaryfront-endWFEcustomer(~50%ofgrouprevenue)isgainingtraction,andweobservedamoreoptimistictonefrommanagementascomparedtoourpreviousengagementduringourvisitinlate-October2025,whichatthattimemanagementguidedforkeyfront-endWFEcustomer'srevenuetoremainflattishYoYin2026.WhileacknowledgingthatUMShassuffered~20pptmarketsharelossoverthepast3-4yearstocompetitorssuchasSamEngineeringinthesupplyofwafertransfermodulesanddeposition-relatedmodulesforitsprimarycustomer(withcurrentmarketshareat~50%),managementbelievesUMS'marketsharehaslikelybottomedandstabilised,supportedbyimprovingorderoutlookprovidedbythecustomer.

●Productionrampfornewcustomer.UMS'2ndfront-endWFEcustomercurrentlyaccountsfor~10%ofitsgrouprevenue,butdemonstratesstrongergrowthpotentialrelativetoUMS'primarycustomer.Managementseesampleopportunityinthesupplyoflargeformatcomponents,suchasdepositionchambers,tothiscustomer.Torecap,UMS'dedicateditsPlant30and30Atoits2ndfront-endWFEcustomer,ofwhichPlant30isnowfullyactivatedwhilehalfofPlant30Aisnowoperational,accordingtomanagement.ThisindicatespositiveprogresscomparedtoourourpriorvisitinQ425,duringwhichwenotedPlant30Awashardlyoperational.

●Labouristhekeyconstraint.Whileseeingimprovingoutlook,managementisnotoverlybullishonUMS'toplinegrowthin2026,notingthathumanlabouravailabilityremainsthekeybottleneckinrampingitsproductionfurthergivenintensecompetitionforskilledlabourinPenang.

●Tacticalinventorymanagementcoulddrivemarginimprovement.ManagementbelievesUMSwillbemoreinsulatedfromchangesincommoditypricesandcouldpotentiallyseemarginimprovementsinthenear-term,astheyhaveincreasedrawmaterials(aluminium/copper)inventoryholdingstoupto6monthsofproductionrequirementsinanticipationofincreasingcommodityprices.

ASEANTech13March2026ab6

Back-endSPE

Vitrox(Buy,PT:RM4.53)

Background:Vitroxisaback-endsemiconductorproductionequipment(SPE)manufacturerwhichspecialisesininspectionequipmentandvisionsystems,primarilyservingoutsourcedsemiconductorassemblyandtest(OSAT)andelectronicmanufacturingservices(EMS)companies.

Meetingpresenter:Mr.ChuJennWeng-CEO

Keytakeaways:

●Operatingatfull-capacity,withstrongorderpull-in.Vitrox'scapacityin1HFY26iscurrentlyfullybookedanditsordervisibilityfor2H26isimproving,whileitiscurrentlyoperatingwithan8-12weekorderlead-time.Managementindicatedthatcustomersarelargelypullinginorders,withstrongdemandpredominantlydrivenbyHPCandautomotivesectors.

●LeveragingabroadEMSandOSATcustomerbase.ForVitrox'sAutomatedBoardInspectionequipment(ABI,60%ofgrouprevenue)usedinPCBassemblyprocesses,managementhighlightedthatVitroxhasexposuretoboththeGPUandTPUsupplychainthroughitsTaiwanandUSEMScustomers,asitsequipmentiscapableofcateringtoHPCboardsandchipswhichareincreasinginsizeandI/Opins.AsforitsTray-basedMachineVisionSystem(MVST,30%ofrevenue),managementhighlightedthatIDMsandOSATsarepullinginorders,drivenbyexposuretologic,memory,optics,andpowersemiconductors.

●Costpass-through.ManagementreiteratedtheneedforVitroxtomaintainpricecompetitive,thoughtheynotedthatcertainproductsarepricedatapremiumtoitscompetitors'duetobetterspecifications.WealsonotedthatVitroxisabletopassoncostinflationfrommemorycomponentsaswellasstrengtheningMYRagainstUSDollartoitscustomers.

MiTechnovation(non-rated)

Background:MiTechnovation's2profit-generatingdivisionsare:1)itsback-endequipmentdivision(SEBU)whichspecialisesindesigningandsupplyingdiesortingequipment,wafer-leveltesthandlersandvisioninspectionequipment;and2)itsmaterialdivision(SMBU,a.k.a.Accurus)whichsuppliessoldering/interconnect

materials.

Meetingpresenters:Mr.OhKuangEng-GroupCEO

Keytakeaways:

●Ordermomentumforback-endequipmentremainsrobust.MiTechisprojecting10-23%QoQgrowthforitsequipmentdivision(SEBU)inQ126,highlightingsustainedordermomentumfromitscustomers.Accordingtothemanagement,MiTechnovationholdsagoodmarketshareindiesortingequipment,whichweunderstandismoretailoredtosmallerdiesizescommonlyusedinconsumerelectronics,thoughMiTechalsosuppliesdiesortingequipmenttooneoftheleadingCPU/GPUmakers.Furthermore,wenotedthatMiTechsuppliesitsequipmenttomajorityoftheleadingOSATsacrossAsia.

●Materialdivisionoperatingatfullcapacity,withadditionalsupportfrommemoryandGPUs.WenotedthatAccurushasbeenproducing360-370bnunitsofsolderballspermonthoverthelast4monthsof2025,beyonditsintendedcapacityof350bn.WhileQ1isseasonallylowgivenplantshutdownduringLunarNewYear,managementisforecastinga40-60%YoYincreaseinAccurus'revenue,withnewmemoryandGPUcustomerspotentiallykeepingcapacityutilisationrateshigh.Toaddresscapacityconstraint,MiTechisbuildinganewfacilityinJohor,Malaysia,ofwhichthe1st/2ndphaseofexpansioncouldadd90bn/120bnunitspermonthcapacity.Constructionofthefacilityissettocompletein2026,andvolumeproductioncouldcommencein2027.

ASEANTech13March2026ab7

Back-endSPE

AEMHoldings(non-rated)

Background:AEMdesignsandmanufacturessemiconductortestandhandlingequipment,whichthecompanyisknownforitshigh-throughputtestingsolutionsforprocessorsandlogicdevices,primarilyservingintegrateddevicemanufacturers(IDMs)andoutsourcedsemiconductorassemblyandtest(OSAT)customers.

Meetingpresenters:Mr.SamerKabbani-CEO;Mr.KwekYouCheer-CFO,Mr.SamirMowla-ChiefofStaff

Keytakeaways:

●Acceleratinggrowthdrivenbycustomerexpansionandrisingtestcomplexity.AEM'sofficialrevenueguidancefor2026impliesa15-28%YoYgrowth(2025:+5%YoY),andmanagementhighlightedthatAEMhasordervisibilityuptoQ326.BetterordermomentumisgenerallydrivenbyrisingAI/HPCdevicecomplexityandvariability.Furthermore,managementhighlightedthatrevenuecontributionfromitscustomer#2(withCPU/GPUexposures)couldincreasemeaningfullyinthecomingyear,whileAEMisalsomakingprogressindiversifyingitscustomerbasetoincludemoreOSATsandhyperscalers.WealsonotedthatAEMiscurrentlydevelopingtestersforback-endmemoryprocesses,whichcouldbeproduction-readybyend-2026.

●Parallelismandmodulartesterdesignunderpincompetitiveedge.ManagementhighlightedthatAEM'shigh-paralleltestsolutionsarewell-positionedtoaddressindustryconstraintsaroundtesttimeandpower/thermaldelivery,notingthatitstestingplatformsaredesignedtoshortenreconfigurationcycleswithitsmodularandswappabledesign.ManagementbelievesthesefeaturescouldprovideAEM'stestingplatformswithcompetitiveedge,astheylowercustomers'capitalrequirementsformodifyingproductionlineswitheachproductlifecycle.

OSATs

Inari(Neutral,PT:RM1.40)

Background:InariisoneofthelargestpublicallylistedOSATsinASEAN,withsmartphoneradiofrequency(RF)devicesmakingup62%ofits1HFY26revenue,whileoptoelectronicsmakeupanother~20%ofitsrevenue.ItprovidesassemblyandtestingsolutionsforRFfilters,sensors,optoelectroniccomponentsandmodules,powermanagementcomponentsandmore.

Meetingpresenter:Mr.LauKeanCheong-GroupCEO

Keytakeaways:

●PotentialRFcontentsharerecovery.InaridoesnotseeitssmartphoneRFcontentlossaspermanent,andexpectstorecoversomeRFcontentsharefortheupcomingsmartphonemodels.Forthecurrentgenerationofsmartphonemodels,weunderstandthatInarimayhavelostsomeshareofRFassemblyworkstoitsTaiwanesepeers,thoughforRFtestingInari'sshareshouldbeflattishYoY.

●WeakerUSDollartoimpactnear-termprofitmargins.ThecompanydidcautionpotentialprofitmarginimpactfromweakerUSDollaragainstMYR,notingthatcostpass-through/price-upforsmartphoneRFs,ifany,willonlyhappeninthenextsmartphoneproductcycle.

●Improvingmomentumfornon-RFs.ManagementnotedthatChipFab'sproductionramp(doublingfor2consecutiveyears)isstillontrack,thoughtherampinFY2026couldbemoreback-loadedin2HFY26,whilemedium-termgrowthcouldalsobecontributedbyopticalinterposersandmixedsignalICs.

ASEANTech13March2026ab8

EMS

VentureCorporation

Background:Ventureisahigh-mix,low-volumeelectronicsmanufacturingservices(EMS)provider,anditsmanufacturingpresenceislargelyconcentratedinSingaporeandPenang,Malaysia.Thecompanyhasadiversifiedcustomerbaseaswellasindustryexposures,withkeyexposuresincludinglifesciences,medicaldevicesandconsumerproducts(PortfolioA);aswellasnetworking,communicationsandsemiconductorequipment(PortfolioB).

Meetingpresenters:Ms.AntheaNg-CFO,MrJasonLim,Mr.JordanChoo-InvestorRelations

Keytakeaways:

●Near-termgrowthdrivenbyDCandsemiequipmentproducts.VentureoperatesahighlydiversifiedEMSmodelacrossseventechnologydomains,withPortfolioB(test&measurement,networking&communications,andadvancedindustrials)currentlyleadingthegrowthandaccountingfor63%of2025revenue.Managementhighlightedthatitsexposurestodatacentersaremainlythroughthecontractmanufacturingofnetworkinterfacecards(NICs),opticaltransceivers,andtestequipment,ofwhichnetworking-relatedproductsaccountforthelargestshareofitsDCportfolioandhasstartedgainingmomentumsinceQ325.Managementbelievesordermomentumfornetworking-relatedproductsshouldsustainin2026.Meanwhile,VenturealsosuppliesPCBstomajorfront-endWFEequipmentmakers,andmanagementhighlightedthatrevenuefromthesecustomersisgrowingatastrongdouble-digitgrowthrate,thoughfromalowbase.AsforitsLifescienceandConsumerproductportfolio(PortfolioA),managementexpectsamoremutedgrowthin2026.

●Activeprocurementmanagementmitigatessupplydisruptions;minimalimpactfromFXvolatility.ManagementnotedthatVentureisabletopassoncostincreasesfrommemorytoitscustomers,andtheyhaveenteredintolong-datedforwardpurchasesformemorycomponentstomitigatepotentialsupplydisruptions.Ma