PETALING JAYA: MI Technovation Bhd continues to maintain a cautious and conservative stance on the outlook for the financial year 2025 (FY25), posting a 44% year-on-year (y-o-y) drop in its net profit for the second quarter ended June 30, 2025 (2Q25).
For 2Q25, the semiconductor assembly equipment solution provider’s net profit fell by 44% y-o-y to RM15.6mil or earnings per share of 1.75 sen.
This was due to a foreign currency fluctuation loss of RM16.8mil as opposed to foreign currency fluctuation gain of RM1.3mil in 2Q24, coupled with a lower interest income of RM1.7mil.
Revenue, however, was up by 21% y-o-y to RM154.12mil as the group benefited from the momentum of advanced packaging demand where all its business units operate in, coupled with accelerated order pull-ins in the 2Q25 particularly due to near-term tariff concerns.
For the first half of 2025 (1H25), MI Technovation saw a 39% decline y-o-y in its net profit to RM33.16mil or earnings per share of 3.72 sen due to foreign currency fluctuation loss of RM18.1mil in 1H25 against the foreign currency fluctuation gain of RM11.8mil in 1H24, coupled with a lower interest income of RM3.4mil due to lower bank deposits.
Revenue in 1H25 increased by 17% y-o-y to RM273.7mil, showing an uptrend of sales performance on stronger demand of advanced packaging where all the group’s business units operate in. The company declared a first interim dividend of one sen per share, payable on Sept 17.
In a filing with Bursa Malaysia, MI Technovation said the semiconductor industry continues to navigate a complex landscape marked by both significant opportunities and persistent challenges, including geopolitical tensions, macroeconomic headwinds and evolving trade & tariff policies, as it moves into 2H25.
“The group remains strategically focused on innovation and supply chain diversification, particularly within the semiconductor advanced packaging sector, to mitigate risks while capitalising on high growth markets,” the company said.
MI Technovation is cautiously optimistic on the 2H25 outlook for its semiconductor equipment business unit (SEBU), anticipating a double-digit revenue growth for FY25.
“This builds on the momentum from 1H25, driven by sustained shipments of our advanced Mi Series Die Sorter in the mobility & wearables segment. SEBU’s strategy remains anchored in delivering diversified product solutions across three critical market segments within the advanced packaging ecosystem,” it said.
Further, the group stated it forecasts a modest growth for its semiconductor materials business unit (SMBU) in FY25, driven primarily by pull-ins of customer orders amid tariff concerns and renewed momentum in the mobility & wearables segment from increased adoption of its specialty alloys, by integrated device manufacturers and outsourced semiconductor assembly and test providers.
“Looking ahead to 2H25, we anticipate stronger growth in the high-performance computing and memory segment, fueled by the global acceleration of artificial intelligence applications requiring high-performance GPUs and high-bandwidth memory technologies.
“While facing challenges from geopolitical tensions, uncertainties in trade policy, foreign exchange volatility, and rising tariffs, SMBU remains focused on the disciplined execution of its business strategy and anticipates a modest improvement in 2H25 supported by typical seasonal new product launches with key customers,” MI Technovation said.
Meanwhile, the group’s semiconductor solutions business unit achieved a critical milestone in June 2025, completing the first power module prototype on its new in-house power module pilot production line in Hangzhou, China.