$Mi Material Holding Limited(MIM.SG)
🚀 Mi Material IPO: Semiconductor Growth Story - But Is S$1.80 Too Pricey?🤔
I came across this IPO yesterday while reading The Straits Times. It caught my interest so I decided to dig a little deeper.
Mi Material is certainly creating a lot of buzz ahead of its SGX listing. It’s showing strong earnings growth and benefits from rising demand in advanced semiconductor packaging and AI.
📈 The Strong Points:
• Revenue jumped 110% year-on-year to US$53.7 million in the first half of 2026
• Net profit rose sharply to US$14.3 million
• Its specialised solder-sphere technology could give it a real competitive edge
⚠️ The Valuation Question:
At S$1.80 per share, Mi Material carries a market cap of roughly S$891 million. That works out to around 69.6 times FY2025 earnings, or 24.3 times annualised first-half 2026 earnings.
The lower multiple assumes this exceptional pace can keep going. But if earnings slow or margins settle back down, investors face real downside — from both lower profits and a de-rating.
🚩 Other Risks to Watch:
Negative operating cash flow, high customer concentration, rising working capital requirements, and the cyclical nature of the semiconductor industry.
🎯 My personal view:
A great business does not automatically mean a great IPO buy. At S$1.80, there is almost no margin for error.
I am not going for it. I prefer to wait for clearer cash flow generation and proof that earnings can sustain this level before jumping in.
Is it worth the premium or should we wait it out? 👇
Not investment and financial advice. Please do your due diligence.