KUALA LUMPUR: Mi Technovation Bhd is poised for stronger earnings in the final quarter of 2026 after its nine-month performance exceeded market expectations.
The stronger-than-expected results prompted Public Investment Bank Bhd (PublicInvest) to raise its earnings forecasts for the semiconductor equipment and materials manufacturer.
PublicInvest said the group’s core net profit surged 73 per cent year-on-year to RM152 million in the first nine months of the financial year ending Dec 31, 2026 (FY26).
The earnings accounted for 78.4 per cent of the research firm’s full-year forecast and 90 per cent of consensus estimates.
Following the results, PublicInvest raised its FY26 to FY28 earnings forecasts by about 10 per cent and maintained its “Outperform” call, with a higher target price of RM9.45.
The research firm expects earnings momentum to continue into the fourth quarter, supported by stronger demand for semiconductor materials and a recovery in equipment deliveries.
Mi Technovation’s semiconductor materials business remained its main earnings contributor, generating more than RM100 million in earnings during the nine-month period.
The division is expected to gain further momentum in the fourth quarter, driven by demand from high-performance computing and memory customers, alongside steady orders from the mobility and wearables segment.
Meanwhile, its semiconductor equipment business is expected to record double-digit revenue growth for the full year despite a 2.2 per cent decline in the first nine months, implying a substantial recovery in fourth-quarter deliveries.
For the third quarter ended Sept 30, 2026, Mi Technovation’s core net profit jumped 82.2 per cent to RM66.5 million from a year earlier, supported by stronger contributions from its semiconductor materials business.
Revenue grew 30 per cent year-on-year, driven mainly by semiconductor materials sales, which doubled to RM154 million.
The increase was supported by stronger demand for solder spheres from the mobility and wearables segment, sustained orders from high-performance computing and memory customers, and a gradual recovery in the automotive and renewable energy segments.
The semiconductor materials division’s earnings tripled to RM55.1 million from RM18 million a year earlier.
PublicInvest attributed the improvement to higher capacity utilisation of more than 85 per cent at its Tainan plant in Taiwan and stronger sales of higher-margin patented solder spheres.
Better performance at its Ningbo plant in China also contributed to the growth.
The division recorded a net profit margin of 28.1 per cent for the first nine months of FY26.
In contrast, revenue from the semiconductor equipment business fell 18.7 per cent year-on-year to RM100.4 million in the third quarter, likely due to lower equipment deliveries, although the average selling price per machine increased.
PublicInvest expects deliveries of Mi Series die-sorting and smart-binning equipment, as well as Si Series test handlers, to pick up in the fourth quarter.
Meanwhile, Mi Technovation’s newer semiconductor technologies and vehicle technologies businesses remained loss-making, recording combined losses of RM24.5 million in the first nine months.
PublicInvest said commercial production of the group’s Vanda 1 power management chip had been delayed until the third quarter of 2027 due to prolonged wafer fabrication lead times.
Development of Vanda 2, however, remained on track.
The group’s electric powertrain systems business was also ramping up operations, with commercialisation expected to support significant growth in 2027.
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