PETALING JAYA: RHB Research believes Coraza Integrated Technology Bhd
should post stronger results year-on-year (y-o-y) and quarter-on-quarter in the fourth quarter of financial year 2025 (4Q25), driven mainly by high utilisation rates and new projects ramping up amidst a semiconductor equipment capital expenditure (capex) upcycle.
“It is set for a potential record-breaking financial year 2026 (FY26), so we see much upside in its multi-year growth story – on front-end semiconductor exposure, new capacities, expanded secondary processes and rising contributions from the aerospace unit,” it said.
The research house pointed out that Coraza’s results are backed by bullish guidance from major Wafer fabrication equipment (WFE)/automated test equipment customers.
“WFE continues to be the key driver, as chipmakers step up capex to support artificial intelligence (AI)-related chips amid tight memory supply, strong AI accelerator demand and global fabrication builds,” it explained.
RHB Research shared that about 80% of revenue is tied to the semiconductor supply chain, with 40% to 50% exposure to the front-end segment, which often carries more stringent requirements.
In December 2025, Semiconductor Equipment and Materials International raised its 2026 forecast for semiconductor equipment sales to US$145bil from US$138bil, up 9% y-o-y).
“Growth visibility should be further enhanced by an expanding total addressable market, new in-house secondary process capabilities, and capacity expansions (Plants 3 and 5), enabling deeper frontend penetration and new automation project wins.“
Meanwhile, as an AS9100-certified manufacturer, the aerospace segment – off a low base – is poised for exponential growth,” it added.
The research house said that while the US dollar weakness versus the ringgit is negative for exporters, it believes market concerns are excessive.
It explained that the impact should be cushioned by strong revenue growth, higher utilisation rates (operating leverage), process improvements and repricing initiatives (especially for new projects).
RHB Research said 70% to 80% of revenue is US dollar-denominated, with a natural hedge from 55% to 65% of the cost of goods sold also linked to the US dollar.
“Our sensitivity analysis indicates a 1% to 2.5% impact for every 1% change in the foreign exchange (forex) rate,” it said.
The research house has maintained forecasts but sees upside to FY26 numbers amidst solid guidance from the major semiconductor customers.
It is also keeping its “buy” call with a target price of 83 sen, as the stock has been greatly oversold, driven by an overreaction to forex concerns.
