Coraza Integrated Technology(CORAZA MK)






Coraza Integrated Technology – Sustained Recovery Seen; Keep BUY


RHB
Small Cap
Asean Research

Shariah Compliant
Malaysia Results Review

22 August 2025

Coraza Integrated Technology
(CORAZA MK)

Sustained Recovery Seen; Keep BUY

Industrials Products & Services | Metal Sheet Fabrication

Buy (Maintained)
Target Price (Return): MYR0.67 (23.3%)
Price (Market Cap): MYR0.55 (USD63.7m)
ESG score: 2.8 (out of 4)
Avg Daily Turnover (MYR/USD): 0.88m/0.21m

Analysts

Tai Yu Jie
+603 2302 8132
tai.yu.jie@rhbgroup.com

Lee Meng Horng
+603 2302 8115
lee.meng.horng@rhbgroup.com

Share Performance (%)

YTD 1m 3m 6m 12m
Absolute (4.4) 12.4 9.0 6.9 26.7
Relative (1.1) 8.3 6.5 6.2 30.0

52-wk Price low/high (MYR): 0.35-0.65

CORAZA MK (CORAZA MK)

Price Close – Relative to FBM KLCI (RHS)

Chart data not available in text format

Source: Bloomberg

  • Maintain BUY and MYR0.67 TP, 23% upside. Coraza Integrated Technology’s 1H25 results met expectations, driven by robust sales recovery and improved operating leverage. Management is guiding for a stronger 2H, supported by sustained semiconductor demand recovery, additional capacity from Plant 3, and contributions from new product introductions. Hence, we view Street’s FY25 forecast of MYR12m (30% below ours) is overly conservative and believe the market has yet to fully price-in Coraza’s recovery prospects.
  • Within expectations. 1H25 core profit of MYR7.5m (1H24: -MYR1.7m) met 43% of our and 62% of consensus full-year estimates. We deem the results to be within our expectations but above consensus, given the expectation of a stronger 2H25 amid continued recovery and seasonality.
  • Results review. YoY, 1H25 revenue surged 88.7% to MYR78.3m, driven by a robust recovery in orders from semiconductor customers and contributions from new product introductions. 1H25 GPM rebounded sharply by 14.5ppts to 27.6% – supported by operating leverage from the strong sales recovery. QoQ, 2Q25 revenue rose 18.6% to a record-high of MYR42.5m on the back of aforementioned factors. Consequently, 2Q25 core profit increased 13.7% QoQ to MYR4m.
  • Outlook. We understand that Coraza’s customer forecasts remain intact despite uncertainties from the tariff situation. We expect stronger 2H25 earnings, driven by continued semiconductor recovery and ongoing project deliveries, supported by additional capacity from the newly-operational P5 facility, which enables the company to move up the value chain with more complex products. Contributions from aerospace and life sciences customers are also expected to gain traction.
  • Extra capacity for new business. The newly-constructed P3 plant, scheduled for completion in Feb 2026, is timely to capture Semiconductor Equipment & Materials International’s (SEMI) projection of record-high semiconductor equipment sales in 2026. A ramp-up in order volumes from both existing and new customers should support margin expansion through operating efficiencies and scale benefits, while management remains focused on delivering more complex products, implementing cost-control measures, and strengthening quality assurance systems.
  • Forecast and ratings. We make no changes to our earnings forecasts and MYR0.67 TP (inclusive of a 4% ESG discount), which is pegged to an unchanged 20x FY25F P/E, ie close to its 3-year mean. Key risks: Slower-than-expected semiconductor sector recovery, labour shortages, and FX rate fluctuations.
Forecasts and Valuation Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Total turnover (MYRm) 81 109 154 183 200
Recurring net profit (MYRm) (4) 4 17 23 26
Recurring net profit growth (%) (121.3) 379.2 34.4 13.6
Recurring P/E (x) na 69.62 15.57 11.59 10.20
P/B (x) 1.9 2.1 1.8 1.6 1.4
P/CF (x) 32.18 40.85 15.89 11.78 9.06
Dividend Yield (%) na na na na na
EV/EBITDA (x) 50.55 27.50 7.61 6.54 5.23
Return on average equity (%) (2.5) 3.4 12.4 14.6 14.3
Net debt to equity (%) net cash net cash net cash net cash net cash

Overall ESG Score: 2.8 (out of 4)

E Score: 2.5 (GOOD)
S Score: 3.0 (GOOD)
G Score: 3.0 (GOOD)

Notes:
Small cap stocks are defined as companies with a market capitalisation of less than USD0.5bn.

Source: Company data, RHB

See important disclosures at the end of this report

Emissions And ESG

Trend analysis

FY24 emission increased due to higher production activities in response to increased customer demand

Emissions (tCO2e) Dec-22 Dec-23 Dec-24 Dec-25
Scope 1 115 101 108
Scope 2 3,422 2,723 3,544
Scope 3
Total emissions 3,538 2,824 3,652 na

Source: Company data, RHB

Latest ESG-Related Developments

While energy consumption increased, Coraza remains committed to balancing business growth with sustainability by implementing energy-efficient technologies, improving production scheduling, and optimising machine utilisation rates to reduce energy waste.

ESG Unbundled

Overall ESG Score: 2.8 (out of 4)

Last Updated: 21 August 2025

E Score: 2.5 (GOOD)
Coraza has taken active steps to manage its environmental risks. It has established policies and procedures to manage disposal of scheduled waste in a responsible manner.

S Score: 3.0 (GOOD)
Coraza ensures a high level of safety and health is maintained, and policies and procedures are put in place in line with labour practice guidelines. It has a good mixture of races among its local employees, and ensures all employees, regardless of race, are treated equally.

G Score: 3.0 (GOOD)
Coraza has applied and adopted the majority of the best practices of the Malaysian Code on Corporate Governance.

ESG Rating History

Chart data not available in text format

Source: RHB

See important disclosures at the end of this report

Financial Exhibits

Asia
Malaysia
Industrials Products & Services
Coraza Integrated Technology
CORAZA MK
Buy

Valuation basis

20x P/E on FY25F EPS

Key drivers

  1. Riding on the wave of semiconductors growth;
  2. Expansion of production capacity and capabilities.

Key risks

  1. Dependence on major customers;
  2. Labour shortages;
  3. FX rate fluctuations.

Company Profile

Coraza Integrated Technology is an integrated engineering supporting services provider with more than 20 years of operating history. Its services include the fabrication of sheet metal, precision machining, and related services like design and development (D&D), and value-added sub module assembly services forwarding.

Financial summary (MYRm)

Financial summary (MYRm) Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Recurring EPS (0.01) 0.01 0.03 0.05 0.05
BVPS 0.29 0.26 0.30 0.35 0.40
Return on average equity (%) (2.5) 3.4 12.4 14.6 14.3

Valuation metrics

Valuation metrics Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Recurring P/E (x) na 69.62 15.57 11.59 10.20
P/B (x) 1.9 2.1 1.8 1.6 1.4
FCF Yield (%) (10.4) (6.1) (1.1) 1.1 11.0
EV/EBITDA (x) 50.55 27.50 7.61 6.54 5.23
EV/EBIT (x) na na 11.53 8.44 6.65

Income statement (MYRm)

Income statement (MYRm) Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Total turnover 80.7 109.0 153.8 182.8 200.1
Gross profit 11.9 21.1 41.9 50.6 57.2
EBITDA 4.1 8.7 34.2 39.3 43.2
Depreciation and amortisation (8.7) (9.0) (11.6) (8.9) (9.2)
Operating profit (4.6) (0.3) 22.5 30.4 34.0
Net interest 0.0 0.5 0.3 0.3 0.9
Pre-tax profit (3.4) 1.0 22.8 30.7 34.9
Taxation 0.8 3.4 (5.5) (7.4) (8.4)
Reported net profit (2.7) 4.4 17.3 23.3 26.5
Recurring net profit (3.8) 3.6 17.3 23.3 26.5

Cash flow (MYRm)

Cash flow (MYRm) Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Change in working capital 5.7 (3.0) (11.7) (9.0) (5.0)
Cash flow from operations 7.3 6.2 17.0 22.9 29.8
Capex (31.6) (21.6) (20.0) (20.0) 0.0
Cash flow from investing activities (29.9) (13.3) (20.0) (20.0) 0.0
Cash flow from financing activities 48.6 6.8 0.3 0.3 0.9
Cash at beginning of period 27.0 53.7 46.2 43.5 46.7
Net change in cash 26.0 (0.3) (2.7) 3.2 30.7
Ending balance cash 53.0 53.3 43.5 46.7 77.5

Balance sheet (MYRm)

Balance sheet (MYRm) Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Total cash and equivalents 54 46 44 47 77
Tangible fixed assets 64 77 86 97 88
Total assets 163 189 205 232 261
Short-term debt 21 13 13 13 13
Total long-term debt 4 21 21 21 21
Total liabilities 37 59 57 61 63
Total equity 126 131 148 171 198
Total liabilities & equity 163 189 205 232 261

Key metrics

Key metrics Dec-23 Dec-24 Dec-25F Dec-26F Dec-27F
Revenue growth (%) (43.7) 35.1 41.1 18.8 9.5
Recurrent EPS growth (%) (121.3) 0.0 347.0 34.4 13.6
Gross margin (%) 14.8 19.3 27.2 27.7 28.6
Operating EBITDA margin (%) 5.0 8.0 22.2 21.5 21.6
Net profit margin (%) (3.3) 4.0 11.3 12.8 13.2
Capex/sales (%) 39.2 19.8 13.0 10.9 0.0
Interest cover (x) (6.06) (0.19) 16.97 22.88 25.56

Source: Company data, RHB

See important disclosures at the end of this report

Results At a Glance

Figure 1: Results review

FYE Dec (MYRm) 2Q24 1Q25 2Q25 QoQ (%) YoY (%) 1H24 1H25 YoY (%) Comments
Revenue 21.8 35.8 42.5 18.6 95.2 41.5 78.3 88.7 Sales recovery from the semiconductor industry
Gross Profit 3.5 9.4 12.3 31.2 253.4 5.4 21.6 298.6
GP margin (%) 16.0 26.1 28.9 2.8 12.9 13.1 27.6 14.5 Margin expansion thanks to operating leverage
Adjusted EBITDA 1.4 7.2 7.9 10.2 464.7 1.8 15.0 749.1
Adjusted EBITDA margin (%) 6.4 20.0 18.5 (1.4) 12.1 4.3 19.2 14.9
Depreciation (2.1) (2.8) (2.7) (1.3) 27.7 (4.3) (5.5) 28.0
Adjusted EBIT (0.7) 4.4 5.2 17.4 N.m. (2.5) 9.5 N.m.
EBIT margin (%) (3.4) 12.2 12.1 (0.1) N.m. (6.1) 12.2 N.m.
Interest income 0.6 0.3 0.3 (11.5) (59.1) 0.9 0.6 (41.2)
Interest expense (0.3) (0.3) (0.4) 25.7 36.6 (0.6) (0.7) 24.3
El/Others (0.1) (0.8) (0.8) (4.2) 684.5 (0.0) (1.7) 3,739.5 Unrealised FX gains/losses
Reported PBT (0.5) 3.5 4.2 19.3 N.m. (2.2) 7.7 N.m.
Tax 0.1 (0.8) (1.0) 19.4 N.m. 0.5 (1.9) N.m.
Effective tax rate (%) 20.1 24.0 24.0 0.0 3.9 21.4 24.0 2.6
Net Profit (0.4) 2.7 3.2 19.3 N.m. (1.7) 5.9
Core Profit (0.3) 3.5 4.0 13.7 N.m. (1.7) 7.5 Within our but above Street’s expectation
Core net margin (%) (1.3) 9.8 9.4 (0.4) 10.8 (4.0) 9.6

Source: Company data, RHB

Recommendation Chart

Recommendation Chart data not available in text format

Source: RHB, Bloomberg

Date Recommendation Target Price Price
2025-05-26 Buy 0.67 0.48
2025-02-28 Buy 0.67 0.54
2024-08-23 Buy 0.62 0.44
2024-05-17 Buy 0.68 0.57
2024-02-29 Buy 0.64 0.44
2023-11-30 Neutral 0.50 0.47
2023-11-16 Neutral 0.57 0.57
2023-08-25 Neutral 0.68 0.65
2023-08-15 Neutral 0.68 0.69
2023-05-29 Neutral 0.77 0.79
2023-05-15 Neutral 0.81 0.77
2023-03-30 Neutral 0.87 0.85
2023-03-01 Buy 1.04 0.98
2022-11-29 Buy 0.91 0.69
2022-09-09 Buy 0.93 0.82

Source: RHB, Bloomberg

See important disclosures at the end of this report

RHB Guide to Investment Ratings

Buy: Share price may exceed 10% over the next 12 months

Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain

Neutral: Share price may fall within the range of +/- 10% over the next 12 months

Take Profit: Target price has been attained. Look to accumulate at lower levels

Sell: Share price may fall by more than 10% over the next 12 months

Not Rated: Stock is not within regular research coverage

Investment Research Disclaimers

RHB has issued this report for information purposes only. This report is intended for circulation amongst RHB and its affiliates’ clients generally or such persons as may be deemed eligible by RHB to receive this report and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. This report is not intended, and should not under any circumstances be construed as, an offer or a solicitation of an offer to buy or sell the securities referred to herein or any related financial instruments.

This report may further consist of, whether in whole or in part, summaries, research, compilations, extracts or analysis that has been prepared by RHB’s strategic, joint venture and/or business partners. No representation or warranty (express or implied) is given as to the accuracy or completeness of such information and accordingly investors should make their own informed decisions before relying on the same.

This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to the applicable laws or regulations. By accepting this report, the recipient hereof (i) represents and warrants that it is lawfully able to receive this document under the laws and regulations of the jurisdiction in which it is located or other applicable laws and (ii) acknowledges and agrees to be bound by the limitations contained herein. Any failure to comply with these limitations may constitute a violation of applicable laws.

All the information contained herein is based upon publicly available information and has been obtained from sources that RHB believes to be reliable and correct at the time of issue of this report. However, such sources have not been independently verified by RHB and/or its affiliates and this report does not purport to contain all information that a prospective investor may require. The opinions expressed herein are RHB’s present opinions only and are subject to change without prior notice. RHB is not under any obligation to update or keep current the information and opinions expressed herein or to provide the recipient with access to any additional information. Consequently, RHB does not guarantee, represent or warrant, expressly or impliedly, as to the adequacy, accuracy, reliability, fairness or completeness of the information and opinion contained in this report. Neither RHB (including its officers, directors, associates, connected parties, and/or employees) nor does any of its agents accept any liability for any direct, indirect or consequential losses, loss of profits and/or damages that may arise from the use or reliance of this research report and/or further communications given in relation to this report. Any such responsibility or liability is hereby expressly disclaimed.

Whilst every effort is made to ensure that statement of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable and must not be construed as a representation that the matters referred to therein will occur. Different assumptions by RHB or any other source may yield substantially different results and recommendations contained on one type of research product may differ from recommendations contained in other types of research. The performance of currencies may affect the value of, or income from, the securities or any other financial instruments referenced in this report. Holders of depositary receipts backed by the securities discussed in this report assume currency risk. Past performance is not a guide to future performance. Income from investments may fluctuate. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors.

This report may contain comments, estimates, projections, forecasts and expressions of opinion relating to macroeconomic research published by RHB economists of which should not be considered as investment ratings/advice and/or a recommendation by such economists on any securities discussed in this report.

This report does not purport to be comprehensive or to contain all the information that a prospective investor may need in order to make an investment decision. The recipient of this report is making its own independent assessment and decisions regarding any securities or financial instruments referenced herein. Any investment discussed or recommended in this report may be unsuitable for an investor depending on the investor’s specific investment objectives and financial position. The material in this report is general information intended for recipients who understand the risks of investing in financial instruments. This report does not take into account whether an investment or course of action and any associated risks are suitable for the recipient. Any recommendations contained in this report must therefore not be relied upon as investment advice based on the recipient’s personal circumstances. Investors should make their own independent evaluation of the information contained herein, consider their own investment objective, financial situation and particular needs and seek their own financial, business, legal, tax and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.

This report may contain forward-looking statements which are often but not always identified by the use of words such as “believe”, “estimate”, “intend” and “expect” and statements that an event or result “may”, “will” or “might” occur or be achieved and other similar expressions. Such forward-looking statements are based on assumptions made and information currently available to RHB and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievement, expressed or implied by such forward-looking statements. Caution should be taken with respect to such statements and recipients of this report should not place undue reliance on any such forward-looking statements. RHB expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

The use of any website to access this report electronically is done at the recipient’s own risk, and it is the recipient’s sole responsibility to take precautions to ensure that it is free from viruses or other items of a destructive nature. This report may also provide the addresses of, or contain hyperlinks to, websites. RHB takes no responsibility for the content contained therein. Such addresses or hyperlinks (including addresses or hyperlinks to RHB own website material) are provided solely for the recipient’s convenience. The information and the content of the linked site do not in any way form part of this report. Accessing such website or following such link through the report or RHB website shall be at the recipient’s own risk.

This report may contain information obtained from third parties. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. Third party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of their content.

The research analysts responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously. The research analysts that authored this report are precluded by RHB in all circumstances from trading in the securities or other financial instruments referenced in the report, or from having an interest in the company(ies) that they cover.

The contents of this report is strictly confidential and may not be copied, reproduced, published, distributed, transmitted or passed, in whole or in part, to any other person without the prior express written consent of RHB and/or its affiliates. This report has been delivered to RHB and its affiliates’ clients for information purposes only and upon the express understanding that such parties will use it only for the purposes set forth above. By electing to view or accepting a copy of this report, the recipients have agreed that they will not print, copy, videotape, record, hyperlink, download, or otherwise attempt to reproduce or re-transmit (in any form including hard copy or electronic distribution format) the contents of this report. RHB and/or its affiliates accepts no liability whatsoever for the actions of third parties in this respect.

The contents of this report are subject to copyright. Please refer to Restrictions on Distribution below for information regarding the distributors of this report. Recipients must not reproduce or disseminate any content or findings of this report without the express permission of RHB and the distributors.

The securities mentioned in this publication may not be eligible for sale in some states or countries or certain categories of investors. The recipient of this report should have regard to the laws of the recipient’s place of domicile when contemplating transactions in the securities or other financial instruments referred to herein. The securities discussed in this report may not have been registered in such jurisdiction. Without prejudice to the foregoing, the recipient is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.

The term “RHB” shall denote, where appropriate, the relevant entity distributing or disseminating the report in the particular jurisdiction referenced below, or, in every other case, RHB Investment Bank Berhad and its affiliates, subsidiaries and related companies.

RESTRICTIONS ON DISTRIBUTION

Malaysia

This report is issued and distributed in Malaysia by RHB Investment Bank Berhad (“RHBIB”). The views and opinions in this report are our own as of the date hereof and is subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. RHBIB has no obligation to update its opinion or the information in this report.

Indonesia

This report is issued and distributed in Indonesia by PT RHB Sekuritas Indonesia. This research does not constitute an offering document and it should not be construed as an offer of securities in Indonesia. Any securities offered or sold, directly or indirectly, in Indonesia or to any Indonesian citizen or corporation (wherever located) or to any Indonesian resident or in any manner which constitutes a public offering under Indonesian laws and regulations must comply with the prevailing Indonesian laws and regulations.

Singapore

This report is issued and distributed in Singapore by RHB Bank Berhad (through its Singapore branch) which is an exempt capital markets services entity and an exempt financial adviser (under the Financial Advisers Act (Cap. 110)) in Singapore. RHB Bank Berhad (through its Singapore branch) may distribute reports produced by its respective foreign entities or affiliates, (collectively, “RHB Group”). RHB Group reports are distributed in Singapore only to “institutional investors”, “accredited investors” or “expert investors” as defined in section 4A of the Securities and Futures Act (Cap. 289) of Singapore (“SFA”). Any other person should not receive, use or rely on this report. RHB Bank Berhad (through its Singapore branch) accepts legal responsibility for the contents of this report, if such contents are distributed or disseminated by way of its Singapore branch (through its Singapore branch). For technical or other reasons, this report is not necessarily distributed to all recipients at the same time. RHB Bank Berhad (through its Singapore branch) is not under any obligation to update or keep current the information and opinions expressed herein or to provide the recipient with access to any additional information. Consequently, RHB Bank Berhad (through its Singapore branch) does not guarantee, represent or warrant, expressly or impliedly, as to the adequacy, accuracy, reliability, fairness or completeness of the information and opinion contained in this report. Neither RHB Bank Berhad (through its Singapore branch) nor any of its agents accept any liability for any direct, indirect or consequential losses, loss of profits and/or damages that may arise from the use or reliance of this research report and/or further communications given in relation to this report. Any such responsibility or liability is hereby expressly disclaimed.

United States

This report was prepared by RHB for distribution solely to persons who are “major U.S. institutional investors” as defined in Rule 15a-6 of the Securities Exchange Act of 1934 (“Exchange Act”) via a U.S. registered broker-dealer as appointed by RHB from time to time. This research is not intended for any party other than “major U.S. institutional investors” and must not be distributed to any other person in the United States. For any queries relating to this report, recipients in the U.S. should contact the appointed U.S. registered broker-dealer. The U.S. registered broker-dealer is NOT responsible for the content of this research report. If you are not a “major U.S. institutional investor”, you may not receive this research report from us.

Disclosure of Conflict of Interest

RHB does not have, and has not had, any interest in or relationship with the issuer or the subject company of this report for at least the past 12 months. RHB does not have, and has not had, any investment banking relationship with the issuer or the subject company of this report for at least the past 12 months. RHB does not have any direct or indirect interests in the securities of the issuer or the subject company of this report.

Analyst Certification

The analyst(s) who prepared this report, and their associates hereby, certify that:

  1. All of the views expressed in this report accurately reflect their personal views about the subject company(ies) and securities covered in this report.
  2. No part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report.


Leave a Reply

Your email address will not be published. Required fields are marked *