PETALING JAYA: Market reaction to SkyeChip Bhd’s first quarter of financial year 2027 (1Q27) results is mixed after the group reported a 16% quarter‑on‑quarter drop in revenue on weaker silicon IP sales.
The integrated circuit designer was among one of the most anticipated initial public offerings this year and debuted strongly on the Main Market of Bursa Malaysia on May 20.
While analysts remained largely positive on its outlook, they point to lumpiness in quarterly financial performance as a risk.
Kenanga Research, which maintained an “outperform” call on the stock but raised the target price (TP) to RM3.64 from RM2, said the structural shift towards demand for customised application- specific integrated circuits (ASICs) over generic solutions that optimises specific performance underpins the company’s outlook.
“This trend is also broadening from technology giants to smaller companies and start-ups, which are more likely to outsource chip-design work, playing directly to SkyeChip’s strengths in memory-interface, network-on-chip and disk-to-disk IP, as well as custom ASIC solutions,” it added.
It noted that despite the company’s short operating history, it has demonstrated credible execution with high-profile customers and pointed out that the customer relationships tend to be sticky as familiarity with their chip architectures increase likelihood of more projects.
“Nevertheless, we note that quarterly earnings may remain lumpy, as revenue is recognised upon the achievement of project milestones.
“Hence, we believe annual earnings provide a more meaningful gauge of SkyeChip’s underlying performance,” it said.
The research house has raised its profit forecast for SkyeChip for the financial years ending March 31, 2027 (FY27) and FY28 by 6% and 5%, respectively.
Apex Research, on the other hand, has cut core net profit forecasts for FY27 by 22.5%, FY28 by 26.3% and FY29 by 20.6% reflecting 1Q27 results as well as a more conservative assumption on the timing of milestone-based silicon IP and custom ASIC revenue recognition.
However, it has maintained a “buy” call but cut the TP to RM3.76 from RM4.99.
