We expect Mi Series’ FY26F shipments to clinch another record of c.150 units (+20% YoY), underpinned by continued WLCSP/WLP content expansion per device to support a broader range of wearable and industrial applications, alongside sustained market share gains and upgrade cycle toward the Mi Quantum Series. Ai Series laser bonders remain at the R&D stage, with only two units slated for shipment in FY26 ahead of mass production in FY27. The group reiterated confidence in turning around Accurus China by 4Q25 and achieving profitability in FY26. MiSE has completed its first-gen SiC MOSFET design, to be manufactured by a Taiwanese foundry, targeting discrete/module builds by mid-26 and commercialisation in FY27. Maintain our forecasts and BUY rating with a target price of RM4.00 (30.5x FY26F EPS).
Positive momentum for Mi Series to sustain through FY26. After an estimated c.125–130 Mi Series shipments in FY25e, we expect FY26F shipments to clinch another record c.150 units. Management attributes the positive momentum to the continued expansion of the advanced packaging platform backed by rising WLCSP/WLP content per device, while smaller sized chips are increasingly required to support a broader range of applications (i.e. drones, robotics, smart glasses, earbuds). As such, management remains unfazed by concerns over a potential slowdown in smartphone shipments amid surging memory prices. Additionally, we expect sustained market share gains and a continued upgrade cycle toward the flagship Mi Quantum Series leveraging on its industry leading throughput of UPH >50k.
Ai Series to anchor SEBU’s next growth leg. Although SEBU’s Ai Series laser compression bonder and laser assisted bonder (focusing on chip-to-substrate) are still at R&D stage with only two units slated for shipment in FY26, we reckon SEBU’s laser bonder could see mass production in FY27. While laser bonders command a higher ASP than the mainstream thermal compression bonder (TCB), they offer greater throughput driven by ultra-fast and localised heating, which lowers cost per package and improves overall manufacturing economics. Also, the reduced thermal stress makes laser bonding more suitable for advanced processors and AI accelerators, which are becoming larger yet thinner where warpage control and yield are increasingly critical. We gathered that MITECH is engaging two customers at the R&D stage, with the Ai5 platform expected to carry a potential price tag of roughly double that of its flagship Mi Quantum Series.
An expansionary phase for SMBU. Management reiterated its confidence in turning around Accurus China by 4Q25 and achieving profitability in FY26. Meanwhile, Accurus Taiwan is operating at full capacity, supporting advanced packaging lines for domestic foundries and tier-1 OSATs. The new Senai plant, designated to serve existing/new customers in SEA region, has received encouraging enquiries ahead of its construction completion. Customer qualification is expected to commence in 3Q26 with mass production slated in early-27.
SSBU: from lab to market. Mi Semiconductor (MiSE) has successfully designed and developed its first-generation silicon carbide (SiC) MOSFET, which will be manufactured by a Taiwanese foundry, with assembly and test to be carried out by an OSAT partner in Taiwan and in house power module assembly line in Hangzhou. Subsequently, they are slated to be built into discrete and module by mid-26 with targeted commercialisation in FY27. In the meantime, MiSE is already developing its second-generation SiC MOSFET, with the R&D wafer scheduled for tape-out in early-26. Management views this segment as a crucial growth pillar for the group in its push toward the RM1bn group revenue mark. To be conservative, we assume nil revenue contribution from this segment until FY27F, pending commercialisation.
We maintain our forecasts and reiterate BUY rating with a target price of RM4.00, based on 30.5x FY26F EPS of 13.1 sen. We like MITECH for its: (i) steady earnings growth trajectory (3-year CAGR of 25% over FY25-27F), (ii) favourable positioning of directly serving Tier-1 OSATs, foundries and IDMs, as well as (iii) undemanding valuation of 26x FY26F P/E relative to ATE peers in Malaysia.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.042857 | 4.075189 |
| EUR | 4.709406 | 4.714290 |
| CNY | 0.582272 | 0.582860 |
| HKD | 0.518565 | 0.522209 |
| SGD | 3.139691 | 3.162038 |