MBSB Research initiated coverage on integrated circuit designer SkyeChip Bhd with a fair value of RM1.26. This target represents a 48% premium over the initial public offering. The upcoming IPO price stands at RM0.88.
MBSB forecasts double-digit earnings growth for the company. Demand for silicon IP and custom application-specific integrated circuits (ASIC) supports this outlook. These drivers align with Malaysia’s New Industrial Master Plan 2030.
SkyeChip revenue more than doubled between fiscal years 2023 and 2025. Operational expansion costs impacted company margins.
Risks include reliance on key management personnel. Increasing competition in the semiconductor sector also poses a challenge.