- 1Q21 revenue and PATMI rose 2% and 8% YoY respectively. Profit growth is below our forecast of +17%. Net cash was a record S$989mn.
- We had expected a stronger rebound from last year’s low base caused by pandemic disruptions.
- Order pipeline is strong but fulfilment is affected by short supply of parts and components.
- Maintain NEUTRAL. Our target price is unchanged at 16x FY21e P/E, its 5-year average P/E. We are leaving forecasts intact, optimistic that order momentum will build up in the rest of the year, notably for life science, medtech devices and consumer wellness.