PETALING JAYA: Phillip Capital Research expects SkyeChip Bhd’s stronger customer traction and strategic partnerships to underpin its order-book growth and support a stronger second half in the financial year 2027 (2H27) outlook.
The research house, which came away positive from SkyeChip’s recent second quarter of financial year 2027 (2Q27) results briefing, said there was encouraging progress in the integrated circuit designer’s business development, with two notable customer wins in the artificial intelligence and memory space, namely Cerebras and Saimemory, together with its appointment as a Design Solution Associate under Rapidus CORE, both in 1H27.
This further strengthened SkyeChip’s market credentials and visibility, enhancing its ability to attract new customers.
The group’s active customer base expanded to 18 in 2Q27 from 12 in 1Q27, with enquiries from prospective customers continuing to build into 3Q27, pointing to a healthy pipeline of further new project opportunities.
Furthermore, stronger customer traction lifted SkyeChip’s order book to RM161mil, improving revenue visibility and positioning the group for sustained growth into 2H27, said Phillip Capital.
The research house noted SkyeChip continues to expand its technical capabilities, with headcount rising to 455 in 2Q27 from 416 in 1Q27, driven by new recruitment in Taiwan and additional hires across Malaysia and Vietnam.
On the intellectual property (IP) front, SkyeChip secured three new patents in 2Q27, bringing its cumulative portfolio to 43.
Its newly developed next-generation combo HBM4/HBM3E IP offers customers greater flexibility amid tight HBM4 supply, providing a differentiated value proposition.
Encouragingly, SkyeChip’s management highlighted strong customer take-up of its new IP offerings, which should drive recurring Silicon IP income and provide further support for longer-term earnings growth.
Phillip Capital has maintained its “buy” call on the stock with an unchanged target price of RM3.50 a share.
It said: “We remain upbeat on SkyeChip’s prospects, supported by commercialisation of the next-generation silicon IP portfolio, continued customer diversification, and new market penetration.”
The downside risks to its call include strengthening of ringgit, unfavourable updates on pioneer tax status and slower-than-expected commercialisation of new IP.
