MI TECHNOVATION | Momentum Sustains into 2H 2025
Mi Technovation is principally involved in the in-house design, development, manufacturing and sale of wafer level chip scale packaging sorting machines
RM2.76
RM2.23
+23.8%
RM2.47
Main
Technology
5286
MI MK
Yes
Chart data description: A line chart showing share price from March 2025 to August 2025, ranging from 0.50 to 2.50. The line generally trends upwards from below 1.00 in March to above 2.00 in August.
Source: Company, PublicInvest Research
1.40-2.33
915.2
| 1M | 3M | 6M | |
|---|---|---|---|
| Absolute Returns | 6.1 | 9.4 | 2.4 |
| Relative Returns | 8.4 | 14.0 | 5.7 |
| Market Capitalisation (RM m) | 1,985.8 |
| No. of Shares (m) | 890.0 |
| % | |
|---|---|
| Oh Kuang Eng | 45.0 |
| Yong Shiao Voon | 11.3 |
Our engagement with Mi Technovation’s management yielded several encouraging insights. Management anticipates that the strong sales momentum from both the Semiconductor Equipment Business Unit (SEBU) and the Semiconductor Material Business Unit (SMBU) will persist into 3QFY25, supported by robust demand for advanced packaging and solder balls in China and Taiwan, which together account for over 70% of group sales. Encouragingly, Mi Equipment operations in China and Korea, along with Accurus China, showed marked improvement. Given the stronger-than-expected 1HFY25 performance and sustained earnings visibility, we are revising our FY25-27F earnings forecasts upward by 7%-13%. We maintain our Outperform rating with a higher TP of RM2.76, pegged to 27x FY26 EPS.
- 1HFY25 results round-up. The 1HFY25 topline rose 16.8% YoY to RM273.6m, contributed by Mobility & Wearables (70.7%), HPC & Memory (22.4%), and Automotive & Renewable Energy (6.9%). Taiwan remains its biggest market, making up 36.9%, followed by China (33.9%), SEA & India (22.1%), and Korea & Japan (5.7%). On the SEBU product sales, Mi Series dominated with 91% followed by Si Series (5%), Vi Series (3.4%), and Ai Series (0.7%). On the earnings breakdown, Mi Equipment units in Malaysia, China and Taiwan & others contributed RM29.7m, RM4.9m and RM2m, respectively. Mi Equipment Korea’s losses halved to RM2.2m. On the SMBU, Accurus Taiwan was the sole earnings contributor while Accurus China losses narrowed to RM3.7m on improved capacity utilisation. The decline in SMBU PBT margin from 26.5% to 18.1% was mainly caused by the weaker Taiwanese currency. Taiwan topped the 1HFY25 solder ball sales, accounting for 55% followed by China (22.1%), SEA (12.8%), and Korea & Japan (9.3%). Sales from patented alloy products such as Cyclomax and iSAC made up 48.5% of its solder ball sales while mass market products contribibuted 33.5%. Meanwhile, Semiconductor Solution Business Unit (SSBU) reported a net loss of RM1.5m, dragged by start-up losses in Hangzhou (RM7.3m), Singapore (RM2m), Ningbo (RM0.8m), and Malaysia (RM0.5m) due to R&D activities.
- Setting up third solder ball plant. The group is in the process of establishing a third solder ball facility at a leased site in Senai, Johor, aimed at serving key multinational clients in Singapore and Muar as part of its risk diversification strategy. Given the lengthy qualification requirements, commercial operations are scheduled to commence in 1H 2027.
- Other notable takeaways. Management anticipates a turnaround in Accurus China next year, supported by the onboarding of two new customers and subsequent capacity expansion. Meanwhile, Mi Equipment Korea is expected to see significant improvement as it has repositioned as a technology advisory centre for US clients, with equipment manufacturing to be realigned under the respective regional units. Lastly, we understand that the latest advanced packaging models – Mi Quantum and Quantum Plus, which are equipped with AI capabilities, are commanding a higher ASP of 20%-50% compared to the traditional models.
| FYE Dec (RM m) | 2023A | 2024A | 2025F | 2026F | 2027F | CAGR |
|---|---|---|---|---|---|---|
| Revenue | 355.9 | 463.4 | 542.7 | 597.1 | 616.4 | 10.0% |
| Gross Profit | 110.3 | 161.3 | 188.9 | 208.4 | 215.1 | 10.1% |
| Pre-tax Profit | 65.5 | 90.6 | 105.3 | 114.2 | 119.3 | 9.6% |
| Core Net Profit | 45.3 | 73.5 | 84.2 | 91.3 | 95.5 | 9.1% |
| EPS (Sen) | 5.1 | 8.2 | 9.4 | 10.2 | 10.7 | 9.1% |
| P/E (x) | 44.0 | 27.1 | 23.7 | 21.8 | 20.9 | |
| DPS (Sen) | 4.0 | 4.0 | 4.0 | 4.0 | 4.0 | |
| Dividend Yield (%) | 1.8 | 1.8 | 1.8 | 1.8 | 1.8 |
Source: Company, PublicInvest Research estimates
T 603 2268 3015
F 603 2268 3014
Figure 1: 1H 2025 Revenue by Country (RM273.6m)
A pie chart showing revenue distribution by country for 1H 2025 (RM273.6m): Taiwan, 36.9%; China, 33.9%; South East Asia+ India, 22.1%; Korea & Japan, 5.7%; America & Others, 1.4%.
Source: Company, PublicInvest Research
Figure 2: 1H 2025 Revenue by Segment (RM273.6m)
A pie chart showing revenue distribution by segment for 1H 2025 (RM273.6m): Mobility & Wearables, 71%; HPC & Memory, 22.4%; Automotive & Renewable Energy, 6.9%.
Source: Company, PublicInvest Research
| FYE Dec (RM m) | 2023A | 2024A | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Revenue | 355.9 | 463.4 | 542.7 | 597.1 | 616.4 |
| Gross Profit | 110.3 | 161.3 | 188.9 | 208.4 | 215.1 |
| EBIT | 67.3 | 92.3 | 107.0 | 115.9 | 121.0 |
| Finance costs | -1.8 | -1.7 | -1.7 | -1.7 | -1.7 |
| Pre-tax Profit | 65.5 | 90.6 | 105.3 | 114.2 | 119.3 |
| Income Tax | -12.8 | -23.9 | -21.1 | -22.8 | -23.9 |
| Effective Tax Rate (%) | 19.5 | 26.4 | 20.0 | 20.0 | 20.0 |
| Core Net Profit | 45.3 | 73.5 | 84.2 | 91.3 | 95.5 |
| 2023A | 2024A | 2025F | 2026F | 2027F | |
|---|---|---|---|---|---|
| Revenue | -8.6 | 30.2 | 17.1 | 10.0 | 3.2 |
| Gross Profit | -13.2 | 37.1 | 15.9 | 8.3 | 4.4 |
| Core Net Profit | -20.5 | 26.6 | 26.2 | 8.5 | 4.5 |
Source: Company, PublicInvest Research estimates
| FYE Dec (RM m) | 2023A | 2024A | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Fixed assets | 196.0 | 181.5 | 256.7 | 251.5 | 245.9 |
| Other long-term assets | 324.9 | 322.7 | 322.7 | 322.7 | 322.7 |
| Cash at bank | 422.7 | 344.7 | 272.7 | 302.6 | 356.8 |
| Other current assets | 278.1 | 329.9 | 385.6 | 423.5 | 437.0 |
| Total Assets | 1,221.7 | 1,178.8 | 1,237.7 | 1,300.3 | 1,362.5 |
| Short-term borrowings | 17.9 | 21.1 | 21.1 | 21.1 | 21.1 |
| Long-term borrowings | 18.4 | 10.6 | 10.6 | 10.6 | 10.6 |
| Payables | 50.1 | 61.1 | 71.6 | 78.6 | 81.2 |
| Other liabilities | 60.7 | 57.3 | 57.3 | 57.3 | 57.3 |
| Total Liabilities | 147.1 | 150.1 | 160.6 | 167.6 | 170.2 |
| Shareholder Equity | 1,074.6 | 1,028.7 | 1,077.1 | 1,132.6 | 1,192.3 |
| Total Equity and Liabilities | 1,221.7 | 1,178.8 | 1,237.7 | 1,300.3 | 1,362.5 |
Source: Company, PublicInvest Research estimates
| FYE Dec | 2023A | 2024A | 2025F | 2026F | 2027F |
|---|---|---|---|---|---|
| Book Value Per Share (RM) | 1.1 | 1.1 | 1.1 | 1.2 | 1.3 |
| NTA Per Share (RM) | 1.1 | 1.1 | 1.1 | 1.2 | 1.3 |
| EPS (sen) | 5.1 | 8.2 | 9.4 | 10.2 | 10.7 |
| DPS (sen) | 4.0 | 4.0 | 4.0 | 4.0 | 4.0 |
| Payout Ratio (%) | 79.0 | 48.7 | 42.5 | 39.2 | 37.5 |
| ROA (%) | 4.3 | 5.7 | 6.8 | 7.0 | 7.0 |
| ROE (%) | 4.9 | 6.5 | 7.8 | 8.1 | 8.0 |
Source: Company, PublicInvest Research estimates
STOCKS
The stock return is expected to exceed a relevant benchmark’s total of 10% or higher over the next 12months.
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SECTOR
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