KUALA LUMPUR: Affin Hwang Capital Research said Mi Equipment Bhd made a significant breakthrough in 2Q18 when it delivered a new series of equipment beyond its core die-sorting equipment.

The company delivered its first testers and fan out wafer level sorter equipment which was a quicker-than-expected penetration into these new market segments, highlighting Mi's product quality and demand for its products, said the research house. 

"The good news is that Mi would be able to grow its orderbook backlog for this new equipment and making full use of its new Bayan Lepas factory capacity, once it comes on stream in 1Q19. This should at the same time quash concerns over underutilisation at its new plant," it added.

Affin Hwang noted another positive as being the securing of a new customer in 2Q18 while the company also kick-started its precision-engineering business to be parked at its future Batu Kawan facility.

The research house reaffirmed its buy call on the counter with a higher target price of RM3.49 from RM2.57 previously.