KUALA LUMPUR (Sept 14): Mi Equipment Holdings Bhd (Mi) shares rose 5.86% at mid-morning today following a positive outlook and higher target price forecast for the stock.

At 10.06am, Mi rose 16 sen to RM2.89 with 1.35 million shares done.

Affin Hwang Capital Research in a note today maintained its “Buy” rating on Mi at RM2.73 with a higher target price of RM3.49 (from RM2.57) and said 2Q18 marked a significant milestone for Mi when it penetrated new product segments, by delivering a new series of equipment (testers and fan out wafer level sorters) and hence expanded beyond its core die-sorting equipment.

“In our view, this puts Mi in a strong position, potentially accelerating its sales orders and growing its orderbook ahead of its new factory delivery by 1Q19, and reducing underutilisation concerns once the latter is completed.

“We raise our 2018-20E EPS and our target price to RM3.49, based on a higher 2019E target PE multiple of 20x (from 17x). Reaffirming BUY call,” it said.