KUALA LUMPUR (Oct 23): Mi Technovation Bhd (KL:MI) will report “stellar” third-quarter results following robust guidance from its soon-to-be-listed semiconductor material unit, its most bullish analyst said.
Public Investment Bank is raising earnings forecasts for 2026-2028 by up to 14% to account for better capacity utilisation, the Singapore listing of Mi Material, and higher profit margins. The research house also raised its target price by RM1.53 to RM9.20, the highest among five covering the stock.
“We expect another commendable set of results,” Public Investment said without giving a quarterly forecast, but Mi Technovation may report a net profit of RM195 million for the full year.
The house also maintained an 'outperform' call on Mi Technovation ahead of the results announcement on Oct 29.
All four other analysts tracked by Bloomberg also recommend 'buy' calls on Mi Technovation that mainly sells equipment such as sorting machines to semiconductor firms. The average of the five target prices is RM7.68, versus the current price of RM6.38.
Shares of Mi Technovation have more than doubled in value so far this year to nearly RM6 billion on Friday, as the Penang-based company shrugged off impact from US tariffs and geopolitical conflict in the Middle East, thanks to a broader upcycle in the semiconductor industry.
The subsidiary, officially Mi Material Holding Ltd, is making its debut on the Singapore Exchange on Oct 28. The initial public offering (IPO) aims to raise over RM680 million, of which RM47 million will go to Mi Technovation.
Mi Material, which manufactures solder spheres that connect chips to circuit boards, could see its earnings triple this year, according to Public Investment’s forecast.
Public Investment expects Mi Technovation to count on Mi Material’s capacity expansion in Malaysia, Taiwan and the US for longer-term earnings growth.
The new Senai plant in Johor could contribute an additional RM70 million to RM90 million in earnings annually at full capacity while commanding better margins, according to the research house.
Over the next two years, Mi Material is also expanding its Taiwan plant and setting up a facility in the US. By 2029, solder ball production is set to rise to 33 lines from 19 lines, while capacity nearly doubles, Public Investment noted.