KUALA LUMPUR (March 27): BIMB Securities has assigned an 80 sen valuation on SkyeChip Bhd, a homegrown semiconductor design house specialising in high-performance silicon intellectual property (IP), ahead of its planned Main Market listing tentatively in May 2026.
“We derive a TP (target price) of 80 sen for SkyeChip, based on a FY2027F PER (price-earnings ratio) of 26.6x applied to EPS (earnings per share) of three sen. This represents a 10% discount to the global peer average PER of 29.6 times,” the research house said in its initial assessment note on Friday.
BIMB said its estimates and TP are subject to revision pending further disclosures from the final prospectus and subsequent engagement with management.
The chip design firm's initial public offering will involve the issuance of 400 million primary shares, representing 22.3% of the enlarged share capital.
Proceeds are earmarked entirely for research and development and growth initiatives, including expansion of operational facilities, computing infrastructure, and engineering talent.
Financially, SkyeChip has delivered strong growth, with revenue rising from RM57.2 million in FY2023 (ended Dec 31, 2023) to RM119.5 million in FY2025, a compound annual growth rate of 44.6%.
Net profit climbed to RM35.9 million in FY2025, while gross profit surged 40% year-on-year to RM50.4 million, driven by new project wins and the commercialisation of custom application-specific integrated circuit products.
Besides, BIMB also noted that China has emerged as SkyeChip’s largest market as the country's chipmakers diversify supply chains under the ‘China+1’ strategy.
“...SkyeChip has strengthened its presence in China — now its largest market (56.5% of FY2025 revenue) — supported by its ability to deliver high-performance, globally competitive silicon IP solutions,” it further said in a note.
Key risks flagged by BIMB include execution delays in complex integrated circuit design cycles, intense competition from global incumbents, talent shortages in Malaysia’s front-end design ecosystem, heavy reliance on China and Taiwan for revenue, and the depreciation of the US dollar.
Despite these risks, BIMB remains optimistic, citing SkyeChip’s asset-light IP-centric model, strong patent portfolio, and exposure to artificial intelligence-driven demand as compelling factors for investor interest.