Article

The tech sector is anticipated to perform well despite the US-Iran conflict, with analysts upgrading Inari Amertron and Pentamaster Corp to BUY and downgrading SKP Resources to NEUTRAL. In 4Q25, sector core PATAMI increased by 1.3% year-on-year and 28.1% quarter-on-quarter, with six companies meeting expectations and five underperforming due to various pressures.

Coraza was the sole outperformer. Analysts have cut FY26F sector earnings by 7.9% primarily due to reductions for SKP and Unisem. Revenue growth was 3.1% year-on-year in 4Q25, driven by factors such as automotive recovery and AI upgrades. While the US-Iran conflict poses risks, its direct impact on Malaysia's trade is minimal, although energy costs could affect semiconductor investments.