Affin Hwang positive on Mi Equipment's new market penetration


KUALA LUMPUR: Affin Hwang Capital Research said Mi Equipment Bhd made a significant breakthrough in 2Q18 when it delivered a new series of equipment beyond its core die-sorting equipment.

The company delivered its first testers and fan out wafer level sorter equipment which was a quicker-than-expected penetration into these new market segments, highlighting Mi's product quality and demand for its products, said the research house. 

"The good news is that Mi would be able to grow its orderbook backlog for this new equipment and making full use of its new Bayan Lepas factory capacity, once it comes on stream in 1Q19. This should at the same time quash concerns over underutilisation at its new plant," it added.

Affin Hwang noted another positive as being the securing of a new customer in 2Q18 while the company also kick-started its precision-engineering business to be parked at its future Batu Kawan facility.

The research house reaffirmed its buy call on the counter with a higher target price of RM3.49 from RM2.57 previously.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

WhatsApp to delay launch of update business features after privacy backlash
US National Rifle Association files for bankruptcy
Oil drops over 2% on China lockdowns, U.S. stimulus concerns
Dollar finishes week stronger as US data hurts risk appetite
GLOBAL MARKETS-Data, lockdowns weigh on stocks
Surviving another lockdown
Malaysia not alone in launching Covid-19 emergency
Short Position - Pui's challange, Online betting, lack of options,
Banks to feel impact of another OPR cut?
Boustead privatisation still a possibility

Stories You'll Enjoy