KUALA LUMPUR (July 20): Affin Hwang Capital Research has initiated coverage on Mi Equipment Holdings Bhd (Mi Equipment) with a “Buy” rating at RM1.95 and target price RM2.57 and said that despite being fairly young, the company has had an immaculate track record (both operationally and financially), leading to its considerable customer base comprising global Tier-1 OSATs and IDMs.

In a note today, the research house said Mi Equipment’s entry into Fan-Out packaging could also pay off well, as this technology remains in its infancy.

“With a 3-year projected core net profit CAGR of 16%, we expect Mi Equipment to grow its business with new product offerings, while penetrating new markets.

“We initiate coverage on Mi Equipment with a Buy rating and a price target of RM2.57, based on 17x CY19E PE,” it said.