Investment Rating - The report assigns a "BUY" rating for the company with a target price of HK$ 1.10, reflecting a potential upside from the current price of HK$ 0.74 [2][3]. Core Insights - The company experienced a year-on-year decline in net profit by 11.9% to MYR 30.2 million, attributed to a decrease in gross margin in the ATE segment, increased staff expenses, and amortization of development costs [3]. - Revenue from the medical segment surged 3.1 times to MYR 78.5 million, making up 46.0% of total revenue in Q1 2024, indicating strong order visibility from primary customers [3]. - The automotive segment remains weak due to order deferrals, but long-term prospects in the EV market are viewed positively despite current challenges [3][12]. Financial Performance - The company reported MYR 170.7 million in revenue for Q1 2024, a 3.3% increase from Q1 2023 [10]. - The gross profit for 2024 is projected to be MYR 231.8 million, with a gross margin of 30.2% [13]. - Net profit is expected to grow from MYR 142.2 million in 2025 to MYR 196.7 million by 2026, reflecting a year-on-year growth of 4.2% and 6.9% respectively [13]. Segment Analysis - The medical segment is anticipated to continue its robust performance, with significant contributions expected from single-use medical devices after the completion of Campus 3 phases [3]. - The electro-optical segment saw a 47.8% year-on-year growth, but recovery in the semiconductor and automotive segments is uncertain due to limited technological advancements and market headwinds [3][12]. - The report highlights insufficient demand for single-use medical devices and loss of orders from key customers in the medical segment as challenges [6][12].
槟杰科达：More patience is required for new drivers