Mi Technovation expected to post strong third-quarter results on the back of Mi Material’s outlook

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Mi Technovation: Strong Third Quarter

Highlights

Public Investment Bank raised its 2026–2028 earnings forecasts for Mi Technovation by up to 14% and increased its target price to RM9.20, citing higher capacity utilisation and Mi Material’s listing.
Mi Technovation shares have more than doubled this year, bringing its market value to nearly RM6 billion, driven by the semiconductor industry upcycle and Mi Material’s listing on the Singapore Exchange, which is targeting proceeds of more than RM680 million.
Mi Material’s new plant in Senai is expected to contribute RM70 million to RM90 million in additional annual revenue, while solder ball production capacity is expected to nearly double by 2029.

This article was translated from the original. Read the original version by our correspondent here.

Forecast revisions and listing catalyst

As reported by The Edge Malaysia, Public Investment Bank raised its earnings forecasts for Mi Technovation for 2026 to 2028 by up to 14% to account for higher capacity utilisation, Mi Material’s listing in Singapore and improved profit margins. The research house also raised its target price by RM1.53 to RM9.20, the highest among the five analysts covering the stock.

Public Investment maintained its "outperform" recommendation ahead of the results announcement on 29 Oct, saying the company is expected to post another impressive set of results. Although it did not provide a quarterly forecast, the firm sees Mi Technovation potentially recording full-year net profit of RM195 million.

The other four analysts tracked by Bloomberg also maintained their buy recommendations on Mi Technovation, which sells equipment such as sorting machines to semiconductor firms. The average target price among the five analysts is RM7.68, compared with the current price of RM6.38.

Capacity expansion supports long-term growth

Mi Technovation shares have more than doubled year to date, bringing the company’s market value to nearly RM6 billion on Friday, as the Penang-based company continues to benefit from the broader upcycle in the semiconductor industry. The performance has remained strong despite U.S. tariffs and geopolitical conflicts in West Asia.

Its subsidiary, Mi Material Holding Ltd, is set to make its debut on the Singapore Exchange on 28 Oct through an initial public offering targeting proceeds of more than RM680 million, of which RM47 million will be channelled to Mi Technovation. Mi Material, which manufactures solder balls used to connect chips to circuit boards, is expected to triple its revenue this year, according to Public Investment’s forecast.

For longer-term earnings growth, Public Investment expects Mi Technovation to benefit from Mi Material’s capacity expansion in Malaysia, Taiwan and the U.S. The new plant in Senai, Johor, could contribute an additional RM70 million to RM90 million in annual revenue when operating at full capacity, with higher margins.

Over the next two years, Mi Material is also expanding its plant in Taiwan and setting up a facility in the U.S. By 2029, solder ball production is expected to increase to 33 lines from 19, while capacity is set to nearly double.

In our earlier coverage of Budget 2027 for Malaysia’s semiconductor industry , we explained how government allocations and related funds are intended to help local companies move into higher-value segments such as integrated circuit design and strengthen their position in global supply chains. We also highlighted the focus on realising investment projects, strengthening domestic supply chains, and the need to translate productivity gains into higher wages for workers.

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