Mixed prospects for MI 5286 MI TECHNOVATION BERHAD's SEBU in the coming quarters, CGS-CIMB Research said
Mi Technovation Bhd is looking at commercial electronics product development for household items with increasing technology content and features for the fourth business unit.
KUALA LUMPUR: Mi Technovation Bhd (MTB) is expecting mixed prospects for its semiconductor equipment business unit (SEBU) and semiconductor material business unit (SMBU) in the coming quarters, CGS-CIMB Research noted.
The research firm noted that the company sees a challenging outlook for SEBU due to cautious equipment spending from its customers amid uncertainty brought about by recent developments such as the ongoing Russia-Ukraine conflict, Covid-19 lockdowns in China and inflationary cost pressures.
Meanwhile, MTB foresees robust demand in SMBU, driven by multi-year growth in 5G mobile and network deployment, high-performance computing and Internet of Things (IoT) despite the China lockdowns and delays in the commercialisation of its Ningbo plant.
"Overall, we cut our FY22-24 earnings per share (EPS) by 15-18 per cent to account for lower equipment delivery and the delay in the commercialisation of the Ningbo plant from the first half (1H) of 2022 to the second half (2H) 2022," CGS-CIMB Research said in a note today.
On earnings, CGS-CIMB Research noted that MTB's revenue in the first quarter (Q1) 2022 jumped 64 per cent year-on-year (YoY) mainly due to the consolidation of Taiwanese firm Accurus Scientific Co Ltd under SMBU following the Accurus acquisition on April 21 for RM217.01 million.
The higher sales from SMBU helped offset the weaker contributions from SEBU, which fell by 17.6 per cent YoY.
MTB attributed the lower SEBU sales to weaker Chinese demand after completing the semi equipment purchase cycle in 2021 and a slow start in the US market, CGS-CIMB Research noted.
The research firm also noted that MTB plans to set up its third and fourth business units under the second phase of its 10-year roadmap (2019-2028) as part of its expansion plan to become a semiconductor and commercial solutions provider.
For its upcoming third business unit, MTB aims to develop a new advanced packaging technology platform and manufacturing process leveraging its expertise in the semi equipment and material businesses.
Meanwhile, MTB is looking at commercial electronics product development for household items with increasing technology content and features for the fourth business unit.
CGS-CIMB Research retains Add call for MTB with a lower target price of RM2.20.
The stock offers decent FY22-23 2.8-3.1 per cent dividend yields.
"We still like MTB's long-term aspiration to be a multinational diversified semiconductor solutions provider," it said.
https://www.nst.com.my/business/2022/05/793889/mixed-prospects-mi-technovations-sebu-coming-quarters-cgs-cimb-research-said
Singapore Investment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
How to de-stress?16 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Keyboarding Warriors2 days ago
-
-
-
-
Cory Diary : Portfolio updates3 days ago
-
What, Me Worry?3 days ago
-
-
-
-
Weekly Markets Outlook3 days ago
-
-
-
Portfolio Update4 days ago
-
-
-
-
-
-
-
-
-
Beware Of Scams6 days ago
-
-
-
Buying a home for face1 week ago
-
-
-
-
-
-
-
Finance Investment Movement 441 week ago
-
-
Market indeed coming down1 week ago
-
-
-
-
-
-
Banks and Miles Report – Mar 20242 weeks ago
-
-
Revisiting Bitcoin2 weeks ago
-
-
-
-
2024 (Portfolio Update)2 weeks ago
-
-
-
Retirement Journey Update for March 20243 weeks ago
-
-
-
1Q 2024 Investment Strategy Update3 weeks ago
-
-
Portfolio Summary for March 20243 weeks ago
-
-
-
Portfolio (March 30, 2024)3 weeks ago
-
-
-
QAF #77 - 2023 Annual Report3 weeks ago
-
Lentor Hills Residences4 weeks ago
-
Burnt out!4 weeks ago
-
-
-
Feb 2024 Expenditure4 weeks ago
-
-
Starting Our Second Property Cycle5 weeks ago
-
-
-
-
-
-
-
Feb 2024 Portfolio1 month ago
-
-
Summary of February 20241 month ago
-
The Market Is A Scam!1 month ago
-
-
-
-
-
-
-
-
Options Trading Journal Jan 20242 months ago
-
-
-
-
-
-
-
End of 2023 Review3 months ago
-
-
Year 2023 DIYQuant Portfolio Performance Report3 months ago
-
Monthly Summary of November 20234 months ago
-
3 Simple Poker Strategies for Beginners4 months ago
-
Migration of website4 months ago
-
-
Abandon REITS?5 months ago
-
-
-
-
-
-
-
-
-
August 2023 Portfolio Updates7 months ago
-
-
-
-
Hello SP Group, I'm Back!9 months ago
-
-
-
-
A New Light11 months ago
-
-
-
-
-
-
-
Demoralized1 year ago
-
2022 Thoughts, Hello 2023!1 year ago
-
Series of Defaults for Maple Finance1 year ago
-
Takeaways from “Sea Change”1 year ago
-
-
Greed is Coming Back1 year ago
-
-
-
-
-
-
-
-
-
-
-
What is Overemployment1 year ago
-
-
-
-
-
-
-
-
-
-
-
Home
MI
Research
Mixed prospects for MI 5286 MI TECHNOVATION BERHAD's SEBU in the coming quarters, CGS-CIMB Research said