Apex Downgrades MI Despite Record 3Q Profit as Share Rally Leaves Limited Upside
Octopaul AI ·
Apex Securities’ research team downgraded Mi Technovation to “Hold” from “Buy”, despite raising its target price to RM7.04 from RM6.38. The revised target implies just 5.2% upside following the stock’s rally. Its 3Q26 core net profit surged 114.3% year-on-year to a record RM69 million, exceeding Apex’s expectations. Growth was driven by stronger semiconductor-materials sales, improved product mix and a lower effective tax rate.
Management expects the materials business’s fourth-quarter revenue to exceed the third quarter, supported by high-performance computing, memory and mobility demand. Mi Material Holding listed on the Singapore Exchange on October 28, with Mi Technovation retaining a 73.7% stake in the subsidiary.
Looking ahead, Apex expects new-business losses and the larger minority share of Mi Material’s earnings to constrain profit attributable to Mi Technovation. Commercial production for its Vanda 1 project has also been delayed to 3Q27 from 1Q27, while losses from its semiconductor-technology and vehicle-technology businesses are expected to remain elevated through 2027.
As of 9:30 a.m. on October 30, Mi Technovation’s share price fell 2.5% to RM6.69.
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