CORAZA: Positive Momentum Expected to Sustain on Strong Order Book and Expansion
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
TA Securities has maintained its “Buy” recommendation for the integrated technology firm, reiterating a target price of RM0.66. This sustained positive outlook is primarily driven by an optimistic forecast for the second half of 2025, underpinned by a healthy order book, anticipated contributions from new product introductions, and strategic progress in its ongoing expansion plans.
Current Performance and Market Position
The group currently boasts a robust order book valued at approximately RM70.0 million, with more than half of this volume originating from the semiconductor sector. For the second quarter of financial year 2025 (2QFY25), revenue contributions continued to be dominated by semiconductors, accounting for 83%, followed by instrumentation (13%), and life sciences and medical devices (5%). The overall plant utilization rate is presently around 60%, indicating room for increased operational efficiency. Management has also indicated that reciprocal tariffs have had a minimal impact on operations, as the group’s direct exposure to the US market accounts for less than 5% of its total revenue. To mitigate reliance on key accounts, the company is actively engaging new customers and is in the process of onboarding two additional multinational clients.
Strategic Growth and Expansion
A key component of the group’s long-term growth strategy is the P3 plant in Nibong Tebal, Penang. Construction of this new facility remains on track for full completion by October 2025. Following its completion, the company will focus on acquiring the necessary certifications and finalizing product qualifications. This significant 83,000 square feet production facility is slated to commence operations in 1Q2026, which is expected to significantly enhance manufacturing capacity and support future product pipelines.
Investment Outlook
TA Securities reiterated its “Buy” rating and an unchanged target price of RM0.66, which implies a potential upside of 12.8% from the last traded price of RM0.585. The investment bank continues to express confidence in the company’s medium- to long-term growth prospects, attributing this positive sentiment to its strategic expansion initiatives and its strong presence in high-growth sectors, particularly semiconductors, instrumentation, and medical/life sciences.
