$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.