PETALING JAYA: Analysts remains positive on MI Technovation Bhd
, as they see the group’s diversification strategy “falling into place” and providing multiple earnings drivers over the next two years.
This is being led by sustained strength in Mi Technovation’s core semiconductor-equipment business and supported by emerging contributions from advanced bonding and semiconductor initiatives, Apex Research said.
The research house expects Mi Technovation’s Mi Series equipment shipments to reach another record of about 150 units, representing 20% year-on-year growth for this year, following an estimated 125 to 130 units last year.
Apex Research said the growth would be due to continued expansion in advanced semiconductor packaging, particularly wafer-level chip scale packaging (WLCSP) and wafer-level packaging (WLP), as chipmakers demand smaller form factors and higher performance across a broader range of applications.
According to the research house, demand is being underpinned by rising WLCSP/WLP content per device, driven by the proliferation of chips used in drones, robotics, smart glasses and earbuds.
The research house noted that Mi Technovation remains unfazed by concerns over a potential slowdown in smartphone shipments amid surging prices for memory chips, as the group continues to gain market share while benefiting from an upgrade cycle towards its flagship Mi Quantum Series of advanced semiconductor equipment.
Looking ahead, Apex Research said the company’s Ai Series laser bonders under the semiconductor equipment business unit are the group’s next meaningful growth leg.
While the laser compression bonder and laser-assisted bonder remain at the research and development (R&D) stage, with only two units slated for shipment this year, the research unit is expecting mass production to begin next year.
It highlighted that laser bonders command higher average selling prices and offer faster, more localised heating, which lowers cost per package and improves manufacturing economics.
Apex Research added that reduced thermal stress makes laser bonding more suitable for advanced processors and artificial intelligence accelerators, where warpage control and yield are increasingly critical.
The research house said it gathered that Mi Technovation is engaging two customers at the R&D stage, with the Ai5 platform expected to carry a potential price tag “roughly double that of its flagship Mi Quantum Series”.
The research outfit is also positive about the outlook for the group’s semiconductor manufacturing business unit (SMBU).
It noted management’s confidence in “turning around its subsidiary Accurus China by the fourth quarter of last year and achieving profitability this year”, while Accurus Taiwan is already operating at full capacity supporting advanced packaging lines for domestic foundries and leading outsourced semiconductor assembly and test companies.
Further downstream, Apex Research highlighted Mi Technovation’s progress in semiconductors through its subsidiary Mi Semiconductor.
The research house maintained its “buy” call on Mi Technovation with a target price of RM4, citing the group’s steady earnings growth, strong positioning with leading customers and an undemanding valuation relative to Malaysian automated test equipment peers.
