Mi Technovation braces for challenging year

KUALA LUMPUR: MI Technovation Bhd expects 2023 to remain a challenging year for the group as the semiconductor market outlook remains soft.

“The inventory level remains high and may take a longer period to digest, hence causing further deferment of expansion plans and uncertainty in capex spending as well as capacity ramp-up schedule in the market.

“Nevertheless, we remain committed to our long-term business strategy to strengthen our position as a comprehensive solution provider to unlock a larger market share through the new product deployment,” Mi Technovation said in a filing with Bursa Malaysia.

“In the semiconductor equipment business unit (SEBU), our equipment platform designed for mobility and wearables segment, together with the introduction of the new artificial intelligence (AI) enabled product line, shall continue to contribute to the top line in 2023, it said.

It added that advanced Multiple bin sorting and laser bonding technology for the high-performance computing (HPC) segment would form another significant revenue stream in the year.

In the first quarter ended March 31, Mi Technovation’s net profit tumbled 50.15% to RM6.4mil from RM12.8mil a year ago.

It posted earnings per share of 0.71 sen during the quarter against 1.43 sen last year.

Revenue fell 13.7% to RM 76.8mil from RM89.1mil in a year prior.