KUALA LUMPUR: Mi Technovation Bhd has set its sights on expanding its semiconductor equipment sales by 150 per cent in the next five years with auto and renewable energy segments as key growth drivers for the group.
Public Investment Bank (PublicInvest) research said the company's management expects all key markets to also contribute to growth namely China (by 60 per cent), Taiwan (207 per cent) and Malaysia (376 per cent).
Mi Technovation has also recently ventured into the Vietnamese and Europe markets.
The three operating countries have a combined annual capacity of 618 machines, with an aim to produce more than 300 machines by 2028.
"Led by the strong comeback of a Chinese tech giant in smartphone sales, Talentek has benefitted from the ambient light sensor testing and sales of its in-house designed tester machine that are in collaboration with Mi Equipment China, which saw an additional 15 machines delivered last year," PublicInvest said.
It added the semiconductor solution business unit (SSBU), which undertakes the power module business (EV and solar) in Penang and Hangzhou, China, will kick start the supply chain for various gadget products while developing its own customer base and distribution networking.
"The key flagship products such as silicon carbide Substrates (SiC) and Insulated-Gate Bipolar Transistor (IGBT) modules will only start contributing in 2026. "The 30 per cent-owned Mi Powertech, which is the owner of various power management patents, has set up a 20,000 sq ft office at Xidian University, Xian to collaborate with various high profile universities on the SiC and IGBT developments," it noted.
The firm maintained "Outperform" on the stock with a target price of RM2.57.