KUALA LUMPUR (Nov 11): Cnergenz Bhd (KL:CNERGEN) could nearly triple its earnings next year thanks to a surge in new orders for the electronic manufacturing services firm, an analyst said.

The company, which specialises in mounting electronic components directly on the surface of a printed circuit board, is seeing a jump in orders from customers diversifying their production out of China, Tradeview Research said in a report initiating a ‘buy’ call on the company.

“Cnergenz is exceptionally well-positioned to capitalise on this movement, given its strong customer base in key Asean manufacturing hubs like Thailand and Vietnam,” the research house said.

The report also marked Cnergenz's first regular analyst coverage in nearly two years and comes following a 90% jump in its stock price from its April lows during the global market turmoil.  

Tradeview’s target price of 55 sen implies another 15% gain from its last price of 48 sen.

Orders on hand could jump to RM180 million within 2026 from just RM30 million at the end of August as customers’ relocations and expansion take hold with the emerging clarity on US trade policies, according to the research house’s projections.

The company's recent acquisition of Xlent has also shifted Cnergenz’s business from a solution provider to a manufacturer possessing its own proprietary intellectual property, creating a new and high-margin revenue stream for Cnergenz in 2026, Tradeview noted.

Further, the company’s expansion into Thailand with exclusive distribution rights for ITW EAE equipment will add to revenue with the recovery in the electronic manufacturing services sector, the research house said.

All in all, Cnergenz could see its net profit rise to RM12.9 million in 2026 from RM4.6 million this year, according to Tradeview’s projections.