[%edIy%] 
Research by Public Investment Bank
Outperform - 12-Month Target Price of RM2.57

"Eyeing Turnaround in Regional Operations"

Management recently highlighted in a meeting that they are confident of seeing a turnaround in Mi Equipment China soon while Mi Equipment Korea is expected to breakeven this year on the back of successful delivery of LAB and LCB prototype machines. We understand that it has received a purchase order with an estimated volume of at least 10 units. Meanwhile, the Group is also in the midst of setting up its SSBU office in Hangzhou to prepare for its silicon-based IGBT module venture. Management has set an aggressive sales growth target of 150% in 5 years for the semiconductor equipment sales segment and also stressed that auto and renewable energy segments would be the key growth drivers for the group. Maintain Outperform call with unchanged TP of RM2.57 based on 30x FY24 EPS.

Analyst:
Chong Hoe Leong 
[%QwOW%]

$KLSE-MI 
Research by Public Investment Bank
Outperform - 12-Month Target Price of RM2.57

"Eyeing Turnaround in Regional Operations"

Management recently highlighted in a meeting that they are confident of seeing a turnaround in Mi Equipment China soon while Mi Equipment Korea is expected to breakeven this year on the back of successful delivery of LAB and LCB prototype machines. We understand that it has received a purchase order with an estimated volume of at least 10 units. Meanwhile, the Group is also in the midst of setting up its SSBU office in Hangzhou to prepare for its silicon-based IGBT module venture. Management has set an aggressive sales growth target of 150% in 5 years for the semiconductor equipment sales segment and also stressed that auto and renewable energy segments would be the key growth drivers for the group. Maintain Outperform call with unchanged TP of RM2.57 based on 30x FY24 EPS.

Analyst:
Chong Hoe Leong 
chonghoeleong@publicinvestbank.com.my