MI

Sector: Semiconductor/ ATE

Analyzed on 19/09/2021

Although MI has retraced from its recent high of RM4.44 to below its EMA25/50 levels twice, those dips seem to be just briefly. We interpret those as market manipulation by market makers to take out stop losses placed by traders. Last Friday was a good trading day for MI as it gained 4% to close at its day high. Technical wise, let’s monitor further if MI can swing around its EMA25/50 levels without continuing its short-term downtrend.  

Looking at prospects, CGS-CIMB expects the SMBU division to deliver stronger sales in Q3’21 given that it is seasonally its strongest quarter for material business as semiconductor companies ramp up IC chip production for mobile devices. Long term plan, MI plans to establish its third business unit, semiconductor manufacturing and specific process services, by 2024. The fourth business unit, technology intensive commercial products, is expected to be ready by 2026.The brokerage maintained “add” rating on Mi Technovation, with an unchanged target price of RM5.20, based on 40 times forward earnings.

Refer to our earlier post on summary of MI’s Q2/2021 earnings.

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NOTT INVEST 

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