[%hMzS%]
Research by CGS
Add – TP of MYR 2.90

“Upgrade to Add; factoring in SSBU numbers” 

We upgrade Mi Tech from Hold to Add on its foray into new businesses whilst offering attractive valuations, with a higher GGM-based TP of RM2.90 as we raise our sustainable ROIC to 15.5% to capture EPS contribution from its new Semiconductor Solutions Business Unit (SSBU) in FY25-26F. With our 3-year FY23-26F EPS CAGR now at 33%, the stock offers an attractive PEG multiple of 0.8x vs. local peers’ 1.6x. Downside risks: weak equipment demand and slow ramp-up of its new venture SSBU. Re-rating catalysts: stronger-than-expected equipment and materials demand.

Analyst(s):
Shafiq KADIR
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Dharmini THURAISINGAM
[%vJSB%]

$KLSE-MI
Research by CGS
Add – TP of MYR 2.90

“Upgrade to Add; factoring in SSBU numbers” 

We upgrade Mi Tech from Hold to Add on its foray into new businesses whilst offering attractive valuations, with a higher GGM-based TP of RM2.90 as we raise our sustainable ROIC to 15.5% to capture EPS contribution from its new Semiconductor Solutions Business Unit (SSBU) in FY25-26F. With our 3-year FY23-26F EPS CAGR now at 33%, the stock offers an attractive PEG multiple of 0.8x vs. local peers’ 1.6x. Downside risks: weak equipment demand and slow ramp-up of its new venture SSBU. Re-rating catalysts: stronger-than-expected equipment and materials demand.

Analyst(s):
Shafiq KADIR
shafiq.abkadir@cgsi.com
Dharmini THURAISINGAM
dharmini@cgsi.com