"Having recorded its best ever quarterly results in a typically weaker quarter for semiconductor players, we believe MPI has set a firm tone on what the group is truly capable of under the leadership of a highly experienced team.
"We expect the group earnings to remain resilient on track to achieve our raised FY21E CNP forecast of RM253.1m to mark a new annual earnings record," said the research house.
It added that MPI's plant utilisation in Ipoh and Suzhou are running at peak capacity on solid demand for its chip utilisation exercise.
Data centres around the world are continuing to expand due to higher web computing usage amid the resurgence of Covid-19 cases, forcing the working population to continue working from home, it said.
Kenanga maintained its "outperform" recommendation on the stock with a higher target price of RM47.50 from RM47 previously, based on 35x price-earnings at two standard deviations to three-year mean, on higher 2021 forecast earnings per share.
In3QFY20, MPI's core net profit tripled to RM74.4mil while revenue jumped 40% to TM526.6mil.
Revenue was higher across the board, from Asia, US and Europe, which drove higher utilisation in both the Ipoh and Suzhou plants, which also benefited from the group's healthy product mix.