PETALING JAYA: En route to its stock market debut, SkyeChip Bhd is positioned for robust growth, leveraging its silicon intellectual property (IP) portfolio to tap into the expanding semiconductor market.
According to TA Research, the integrated circuit (IC) industry outlook is underpinned by several key drivers, including artificial intelligence (AI) and advanced computing, with global semiconductor sales expected to approach nearly US$1 trillion by 2026.
It said SkyeChip’s growth will be largely driven by this underlying demand, adding that the group is primarily supported by developments in the China and Taiwan markets, which currently account for 90% of its revenue.
The research house takes a favourable view of the Penang-based fabless IC design company, highlighting the group’s successful design and commercialisation of a range of silicon IPs – including memory interface IP, Network-on-Chip IP and Die-to-Die interface IP – leveraging its in-house expertise.
“It possesses comprehensive in-house expertise across the IC design value chain, from architecture to product engineering, and has experience in project management and global supply chain execution.”
SkyeChip provides licensable silicon IPs for integration into customers’ IC products, while also designing and developing custom application-specific integrated circuit solutions tailored to specific customer requirements, delivering semiconductor chips optimised for targeted applications.
The firm aims to raise up to RM352mil via its initial public offering (IPO), seeking a listing on Bursa Malaysia’s Main Market.
TA Research added that SkyeChip plans to design and develop new compute and AI silicon products to further address the rising demand for high-performance, energy-efficient processing in data centres and AI applications.
“These initiatives include the development of high-performance central processing units and AI platforms,” it said.
Meanwhile, SkyeChip has continued to deliver a strong profitable trajectory since financial year 2024 (FY24), supported by the solid performance of its silicon IP segment, which has been a core earnings driver.
TA Research noted that core profit rose 6.8% year-on-year (y-o-y) to RM32.3mil in FY24, before increasing a further 15.1% y-o-y to RM37.1mil in FY25.
Looking ahead, TA Research projects profits to grow strongly in FY26, then continue growing at a slightly slower but stable pace in FY27 to FY28.
“We estimate the group will record earnings growth of 24.8%, 16.6% and 16% to RM46.3mil, RM54mil and RM62.7mil for FY26, FY27 and FY28 respectively, anchored by an unbilled order book of RM130.3mil, a robust business expansion plan and a healthy industry outlook,” it highlighted.
TA Research added that post-listing, following the utilisation of IPO proceeds, SkyeChip’s balance sheet is expected to be in a net cash position of RM398.3mil.
SkyeChip is also targeting a dividend payout ratio of up to 25% of its net profit.
