SAM Engineering & Equipment expects lower equipment sales, says CGS-CIMB Research

SAM Engineering & Equipment (M) Bhd, the Malaysian-listed subsidiary of a Singapore parent servicing the precision and equipment markets, is expecting lower sales in the next few months.

Its management has turned cautious on the company’s second half of its 2023 financial year (2H23), which runs from October 2022 to March 2023, in view of softer consumer electronics demand amid rising inflationary pressures and interest rates.

“The group expects lower equipment sales in view of softer demand, in line with the slowdown in the global semiconductor industry. This, in turn, could translate to lower sales of data storage equipment,” according to CGS-CIMB Securities Sdn Bhd (CGS-CIMB Research) in a company note released today.