Mi Tech eyeing turnaround in regional operations
Mi Technovation Bhd (Mi Tech) is expecting 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.
Following a briefing with the company recently, the research team at Public Investment Bank Bhd (PublicInvest Research) said: “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 per cent in five 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.”
It also noted that the management has set its sights on expanding its semiconductor equipment sales by 150 per cent in the next five years, led by high performance computing (die sorter, LCB and vision handler), mobility and wearables (die sorter, sensor test handler, vision inspection handler), memory (die sorter), automotive (vision inspection handler, sensor test handler), and renewable energy (KGD test handler and power module test handler, namely IGBT & SiC).
It also pointed out that all key markets are expected to be the growth drivers, namely, China (60 per cent), Taiwan (207 per cent) and Malaysia (376 per cent).
It has also recently ventured into the Vietnamese and EU markets. The three operating countries have a combined annual capacity of 618 machines, with an aim to produce more than 300 machines by 2028.
Aside from that, it said, the company is upbeat on 25.5 per cent-owned Talentek.
“Led by the strong comeback of a Chinese tech giant in smartphone sales, Talentek has benefitted from the ambient light sensor testing and sales of its in-house designed tester machine that are in collaboration with Mi Equipment China, which saw an additional 15 machines delivered last year,” it said.
Meanwhile, PublicInvest Research said, the company is looking at new materials for solder ball.
Accurus Scientific is currently looking at Thermal Interface Materials for the interior and exterior solder ball packaging at the Ningbo plant.
It helps to improve heat transfer between the two surfaces and enhance the efficiency of the thermal management system, which is vital for the graphic processing unit chips.
“The semiconductor solution
business unit (SSBU), which undertakes the power module business (EV and solar) in Penang and Hangzhou, China, will kick start the supply chain for various gadget products while developing its own customer base and distribution networking.
“The key flagship products such as silicon carbide Substrates (SiC) and InsulatedGate Bipolar Transistor (IGBT) modules will only start contributing in 2026.
“The 30 per cent-owned Mi Powertech, which is the owner of various power management patents, has set up a 20,000 sq ft office at Xidian University, Xian to collaborate with various high profile universities on the SiC and IGBT developments,” the research team said.
All in, PublicInvest Research maintained its ‘outperform’ rating on the stock.
Management has set an aggressive sales growth target of 150 per cent in five 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.
Mi Tech