Mi Technovation: Record 3Q Profit; Downgraded On SGX Spin-Off

PENANG – Semiconductor equipment and materials manufacturer Mi Technovation Berhad (MITECH) delivered a record-breaking performance in its third quarter ended September 30, 2026 (3QFY26), driven by strong demand in High-Performance Computing (HPC), memory, and mobile device segments.

The group posted a record core net profit of RM69.0 million for 3QFY26, representing a massive 114.3% surge year-on-year and a 34.0% gain quarter-on-quarter. This brought its nine-month (9MFY26) core net profit to RM151.0 million, up 92.9% year-on-year and beating full-year market expectations. Group revenue for the quarter rose 29.9% year-on-year to RM256.0 million, anchored by its Semiconductor Material Business Unit (SMBU), which saw sales more than double to RM154.0 million.

Mi Technovation

A key strategic milestone during the period was the successful separate listing of MITECH’s materials division, Mi Material Holding Limited (SGX: MIM), on the Singapore Exchange (SGX) Mainboard on October 28, 2026. Debuting at S1.80pershare,thespin−offcreatedanimpliedmarketvaluationofS891 million (c.RM2.8 billion) for Mi Material, with MITECH retaining a controlling 73.7% equity stake. Proceeds from the offering will fund new production capacity in Senai, Johor, and Taiwan, alongside new research facilities in the United States and Singapore.

Following the listing, equity research houses upgraded MITECH’s FY26–FY28 core net profit forecasts while shifting to a Sum-of-Parts (SOP) valuation methodology to account for Mi Material’s market price. While raising MITECH’s target price to RM7.04 (from RM6.38), analysts downgraded the stock rating from ‘BUY’ to ‘HOLD’. They cited limited upside potential following a strong price run-up to RM6.86, alongside near-term losses in its semiconductor and electric vehicle powertrain business units.

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