KUALA LUMPUR (June 25): SkyeChip Bhd (KL:SKYECHIP) has shattered the most bullish target price but the chip design company now has a new fan as Apex Securities initiated coverage with a 'buy' call.
As the only profitable, pure-play semiconductor design company listed across Southeast Asia, SkyeChip should be valued 15% above its peers’ average forward earnings multiple, the research house said in assigning a target price of RM4.67 — more than double that of the next-most bullish call.
The target “is achievable as SkyeChip demonstrates execution consistency over the next two to three reporting periods and the market progressively de-risks the China concentration”, Apex Securities said in a note.
SkyeChip rose as much as 10 sen over 3% to RM3.07 in Thursday trading. The stock, listed about a month ago with great fanfare, has more than tripled from its initial public offering price of 88 sen per share.
The report also comes at a time when technology stocks are soaring across Asia after US memory chip giant Micron Technology Inc issued quarterly sales forecast that beat estimates, assuring investors worried about a potential slowdown in artificial intelligence investments.
However, the most significant development at SkyeChip was the emergence of the US as a source for 23% of its revenue for the financial year ended March 31, 2026 (FY2026), which reduced China-Taiwan concentration from nearly 91% at the end of October 2025, Apex Securities noted.
“This is not merely a diversification story but a product quality certification” as US AI chip start-ups are sophisticated, well-funded buyers with access to all global providers, Apex Securities added.
For FY2027, Apex Securities is projecting SkyeChip to make a net profit of RM90.2 million, partly backed by a potential renewal of its pioneer status exemption that kept the effective tax rate at under 3%.