PETALING JAYA: SFP Tech Holdings Bhd
three-year revenue and core net profit is expected to be boosted by better order loadings from its key customers, in tandem with its capacity expansion.
The industries where the company’s key customers are operating are also relocating their supply chains to Malaysia. This has prompted SFP to expand its capacity and improve its service offerings, said UOB Kay Hian (UOBKH) Research.
SFP recorded a five-year revenue and net profit compounded annual growth rate of 46% and 43%, respectively, from 2018 and is on track to resume its growth momentum in 2024.
As of mid-August 2024, the group’s orderbook stood at RM94mil following the brink of the semiconductor upcycle, which is spurring front-end semiconductor demand.
UOBKH Research believes there could be more traction in the upcoming order book loadings.
Both UOBKH Research and Hong Leong Investment Bank (HLIB) Research maintained their “buy’’ calls on the stock with target prices of 98 sen and 80 sen a share, respectively.
HLIB Research said this is based on a price earning ratio multiple of 35 times of financial year 2026 earnings per share.
