Mi Technovation Shares Fall Following Singapore Property Acquisition
KUALA LUMPUR, Nov 2 (Bernama) -- Mi Technovation Bhd’s shares fell in early trade on Monday following the group’s planned acquisition of a freehold industrial building in Singapore for S$103.88 million (RM331.8 million).
At 10.35 am, the counter declined 26 sen to RM6.37, with 2.46 million shares traded.
In a research note today, Apex Securities Bhd said the acquisition, undertaken through its wholly owned subsidiary Ohima International Pte Ltd, would see the building at 25 New Industrial Road, Singapore, serve as the global headquarters and operational hub for its vehicle technologies business unit (VTBU).
It said the seven-storey vacant light industrial building, with a gross floor area of 111,389 square feet, is being acquired at a price which Apex Securities considers fair and in line with the independent valuation.
The research house noted that the acquisition would be primarily funded through bank borrowings amounting to RM247.2 million, representing 74.5 per cent of the purchase consideration.
However, the rental savings of approximately RM1.05 million annually would only materialise after November 2028, following the expiry of VTBU's existing Singapore headquarters tenancy.
On Mi Technovation’s earnings outlook, Apex Securities said management expects the fourth quarter for the financial year 2026 (4Q FY2026) performance to improve from the preceding quarter, supported by the seasonal peak in the semiconductor manufacturing business unit (SMBU) and RM30 million to RM40 million worth of semiconductor equipment business unit (SEBU) shipments deferred into October.
Nevertheless, the research house cautioned that one-off listing expenses of RM6.5 million and a special employee bonus provision would weigh on the quarter’s earnings.
“We raise Mi Technovation’s FY2026 core net profit by 8.2 per cent to RM209.4 million and keep FY2027/FY2028 broadly unchanged.
“The FY2026 uplift comes from applying nine-month segment margins to its fourth quarter, while in FY2027/FY2028, the KHL finance cost and wider semiconductor test business unit (STBU) and VTBU losses are offset by a higher SEBU margin,” it added.
Apex Securities maintained its “hold” recommendation on Mi Technovation but lowered its target price to RM6.99 from RM7.04, based on a sum-of-parts valuation.
-- BERNAMA