PETALING JAYA: Cnergenz Bhd’s earnings recovery for the financial year 2026 (FY26) will be supported by its strengthening order book growth momentum, says RHB Research.
In a note to clients, the research house said growth will come from accelerating artificial intelligence (AI)-driven demand across the group’s core surface mount technology (SMT) distribution business and the commercial ramp-up of its AI tester under the original design manufacturer (ODM) segment.
Following a recent site visit to Cnergenz, RHB Research said its management guided for strong revenue visibility into FY26, with earnings expected to strengthen progressively from the second quarter of financial year 2026 onwards.
The group’s cumulative FY26 secured sales have surpassed full-year FY25 revenue of RM114.8mil, driven by accelerating AI-related demand for SMT equipment.
This, in turn, is spurred by capacity expansion among Tier-1 electronics manufacturing services customers, the commercial ramp-up of its ODM AI tester, and the recovery of its integrated solutions segment.
As at end-May, the group’s outstanding order book value expanded to approximately RM190mil, from RM82.2mil in end-March 2026.
Meanwhile, the group’s ODM AI tester is gaining commercial traction with outstanding ODM orders at approximately RM10mil to RM11mil as at end-June, supported by the growing demand for its AI tester platform.
Following successful production qualification, 20 units have been fully delivered, and management is targeting delivery of another 30 units in the second half of financial year 2026 (2H26).
In addition, the development of the new soldering platform with a European customer is still ongoing, pending product design amendments, with commercial rollout targeted by end-FY26.
It expects the continued ramp-up of ODM production, together with the recovery in memory-related projects, to support its subsidiary Xlent Innovator Sdn Bhd’s return to profitability in 2H26.
RHB Research also said it raised the group’s FY26, FY27 and FY28 earnings forecasts by 2%, 14% and 13%, respectively, mainly to reflect stronger revenue assumptions following the significant improvement in order book growth.
