Maybank Upgrades SKYECHIP to Buy After Pullback, Citing 22% Upside as IP Business-Led Growth
Octopaul AI ·
Maybank Investment Bank analyst Lucas Sim upgraded SkyeChip to “Buy” from “Hold”, retaining his RM3.28 target price, implying 21.5% upside. He sees value emerging following the recent share-price pullback. Its 1HFY27 core net profit of RM33.3 million met expectations.
Second-quarter core net profit rose 11.7% quarter-on-quarter to RM17.5 million, supported by a 30.3% increase in Silicon IP revenue and stronger operating margins. Japan also began contributing revenue. Meanwhile, Silicon Products revenue declined 16.1%, reflecting the timing of project milestones and revenue recognition.
Looking ahead, Lucas favours SkyeChip’s high-performance memory-interface IP and custom ASIC exposure, positioning it to benefit from the AI and memory upcycle. He forecasts core net profit to grow from approximately RM49 million in FY26 to RM93 million in FY29, representing a three-year compound annual growth rate of approximately 24%.
As of 9:39 a.m. on November 2, SkyeChip’s share price rose 0.4% to RM2.70.
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