KUALA LUMPUR (Nov 22): Globetronics Technology Bhd (KL:GTRONIC) surged as top most-actively-traded stocks on Friday morning, after the company secured a RM145 million contract to provide integrated circuit (IC) product packaging, testing, and backend services to Taiwan-based ChipMOS Technologies Inc.
Globetronic opened at 54 sen and climbed as much as six sen, or 11%, to reach an intraday high of 57 sen, marking its largest single-day gain since Sept 23. At 9:20am, Globetronics was trading at 56 sen, up five sen or 10.75%, valuing the company at RM378.21 million, with 17.32 million shares changing hands, almost double its 8.82 million average daily trading volume.
Under the three-year agreement, which runs from Nov 21, 2024, to Nov 20, 2027, Globetronics will provide dicing, packaging, and testing services for IC products supplied by ChipMOS, a leading semiconductor assembly and testing provider listed on both the Taiwan Stock Exchange and Nasdaq.
The contract’s value of RM145 million is based on a volume forecast provided by ChipMOS, Globetronics noted.
Shares of Globetronic have tumbled 64.87% so far, year-to-date, partly due to heavy selling in September, following the resignation of its external auditor.
In a statement in September, Globetronics said KPMG’s voluntary resignation as auditors of the company was in line with the group’s “new strategic direction, influenced by newly emerged shareholders and management”.
Analysts are broadly cautious on the counter, with Bloomberg data showing only one “buy” call out of six research houses covering the stock. The remaining four have issued “hold” recommendations, while one has a “sell” rating.
The consensus 12-month target price stands at RM1.04, representing a potential upside of 82.45% from the current level.
On a related development, Globetronics executive chairman Kent Liaw Way Gian was reported to have resigned from the board of APB Resources Bhd (KL:APB), whose shares experienced a decline shortly after Globetronics’ September sell-off linked to its auditor’s resignation.
Liaw, who joined Globetronics’ board in February 2023, shortly after APB Resources emerged as the semiconductor firm’s second-largest shareholder, had acquired a 10.36% stake (70 million shares) in the company for RM140 million, or RM2 per share.
Liaw was appointed to APB Resources’ board in June 2023.