PETALING JAYA: MI Technovation Bhd
’s earnings momentum strengthened in the third quarter ended Sept 30, 2026 (3Q26), driven by robust demand for its semiconductor materials business and a recovery in equipment billings.
This has prompted analysts to raise its earnings forecasts for the semiconductor player.
Apex Research said for 3Q26, Mi Technovation registered a core net profit of RM69mil, up 114.3% year-on-year (y-o-y) and 34% quarter-on-quarter, bringing its nine-month core net profit to RM151mil, a 92.9% increase from a year earlier.
According to the research house, the group’s earnings came in above its expectations at 110% of its previous full-year forecast and 89% of consensus.
Revenue rose 29.9% y-o-y to RM256mil, supported by strong contributions from the semiconductor materials business unit (SMBU), which more than doubled its revenue to RM154mil from RM73.6mil a year earlier.
The improvement was underpinned by higher sales volumes and average selling prices, better product mix, as well as sustained momentum in high-performance computing (HPC) and memory-related demand.
SMBU’s profit before tax margin also improved to 35.8% in 3Q26 from 24.5% in the corresponding quarter last year.
As for its semiconductor equipment business unit (Sebu), revenue was recorded at RM100.4mil, down 18.7% against a high base in 3Q25, when equipment deliveries were stronger.
For the nine-month period, group revenue expanded 38% y-o-y to RM649.8mil, with SMBU contributing 56.7% of total revenue following a 98.3% increase in sales.
With that, Apex Research said it will raise net profit forecasts for financial year 2026 (FY26), FY27 and FY28 by 40.6%, 27.1% and 24.1% respectively.
The research house said the upgrade reflects a recalibrated SMBU on the nine month run-rate and prospectus capacity plan, a higher Sebu volume and margin base, and a lower FY26 forecast effective tax rate of 23%.
In addition to that, STBU and vehicle technologies business unit losses of RM37.6mil, RM32mil and RM30mil as well as the 26.3% minority interest in Mi Material of RM6.4mil, RM42.2mil and RM46.6mil also is a reflection of the upgrade.
Mi Technovation expects SMBU revenue in 4Q26 to exceed the preceding quarter, supported by continued strength in HPC and memory, alongside mobility and wearables demand.
Sebu is also expected to sustain its recovery, with management guiding for double-digit revenue growth for FY26.
Separately, Mi Material Holding, Mi Technovation’s semiconductor materials subsidiary, made its debut on the Singapore Exchange Mainboard on Oct 28 at Singapore dollar US$1.80, giving it a market capitalisation of $891mil.
With Mi Material separately quoted, Apex Research said it will switch its valuation to a sum-of-parts target price of RM7.04.
However, it downgraded its recommendation to “hold” from “buy”, given the share price’s recent appreciation to RM6.86, leaving limited upside.
