New high for Mi Equipment share price

Mi Equipment

PETALING JAYA: Mi Equipment Holdings Bhd continued its share price hike this week, as the company’s potential sales and order book outlook has increased investor appeal in the stock.

At 5pm yesterday, the equipment manufacturer of wafer level chip scale packaging sorting machines for the semiconductor industry saw its shares hit a new high to close 17 sen up at RM3.32.

Mi Equipment’s shares have risen more than 130% since its listing on June 20.

RHB Research in a recent report admitted that “a bullish bias may emerge” above the RM2.48 level.

Affin Hwang Capital, meanwhile, said Mi Equipment had made a significant breakthrough in the second quarter of 2018, whereby it delivered its first units of Si- and Li-series equipment.

This milestone would essentially open the company to the fan out wafer level packaging sorting equipment (Li series) and testing equipment (Si series), it said.

“We had initially thought that most of Mi Equipment’s newer products were primarily at the development stage and built for its customers for demo purposes only. The quicker-than-expected penetration into these new market segments highlights Mi Equipment’s product quality and demand for its products.

“The good news is that Mi Equipment would be able to grow its orderbook backlog for this new equipment and make full use of its new Bayan Lepas factory capacity, once it comes on stream in the first quarter of 2019. This should at the same time quash concerns over under-utilisation at its new plant,” it said in a recent report.

An analyst from a local bank-backed brokerage said he was positive on the company’s near-term outlook, given Mi Equipment’s adoption of wafer level packaging.

“We believe the new product adoption would bode well for the company,” he said.

Affin Hwang Capital said it was upbeat about the company’s earlier-than-expected penetration of new products.

“We make several changes to our assumptions factoring in better sales for its new products, given earlier-than-expected acceptance of its new equipment.

“In our view, the development of demo units and the qualification process that Mi Equipment is undergoing now for its new series of equipment could potentially accelerate its sales orders and create an immediate order book backlog.”

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