Quick take: Mi Technovation shares up on record profit

KUALA LUMPUR: Shares in MI Technovation Bhd rose over 6% in early trade Monday after posting a record high net profit of RM26.11mil in the second quarter ended June 30, 2021 (2QFY21).

The counter added 6.43%, or 25 sen to RM4.14 with over 3.2 million shares traded.

Mi Technovation’s net profit for 2QFY21 soared to a record high of RM26.1mil from RM18.18mil posted a year earlier, underpinned by higher sales revenue.

Its revenue for the quarter grew 89.44% to RM117.29mil from RM61.92mil a year ago, thanks to strong demand for semiconductor equipment.

For the first six-month period ended June 30, its net profit grew 4.02% to RM29.62mil from RM28.48mil a year before. Revenue for the period jumped 76.48% to RM171.47mil against RM97.16mil.

AmInvestment Bank Research said MI Technovation rose and tested the RM3.92 resistance level.

“With its RSI indicator in an uptrend, coupled with a higher trading volume, we see a possibility for a technical breakout.

“If this happens, we expect it to move towards the short-term target prices of RM4.09 and RM4.17,” it said.

“The downside support is projected at RM3.67. Traders are advised to exit on a breach to avoid further losses,” AmInvestment said.

Meanwhile, PublicInvest said MI Technovation’s results accounted for only 41% and 45% of the house and consensus expectations, respectively.

“Despite the weaker-than-expected results, we make no changes to our earnings forecasts as we expect to see a catch-up in the subsequent quarters.

“Pending more guidance from the upcoming briefing, we maintain our outperform call with an unchanged target price of RM5.78 based on 45x FY22 EPS,” PublicInvest said.

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