Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
and RHBInvest initiated coverage on QES - Initiate BUY with MYR0.57 TP (23x FY26F P/E, 40% discount to peer mean), 46% upside with 2% FY26F yield. QES Group is trading at a cheap 16x FY25F P/E - below the peer average, and vs a 3-year earnings CAGR of 15.6%. This chip production equipment/automated test equipment (SPE/ATE) player has exposure to the front-end equipment segment. Earnings growth from front-end and its manufacturing portfolio via MedTech contributions, material progress from China collaboration projects, and the chip upcycle should lead it towards a firm earnings recovery and growth in FY25-27F.
Semiconductor upcycle. The global semiconductor industry remains firmly in a strong artificial intelligence (AI)-driven upcycle, with sales projected to reach USD772bn in 2025 and USD975bn in 2026. Geopolitical shifts related to the China Plus One and Vietnam Plus strategies, as well as South-East Asia's rise as a manufacturing hub, bodes well for QES, in view of its ASEAN exposure in capturing the growing demand for various equipment for diverse industry applications. Its MYR86m orderbook should grow in FY26, driven by the recovery in semiconductor demand, the ramp-up of medical technology (MedTech) manufacturing, and material contributions from China collaboration projects. Management remains committed to grow the manufacturing division, so that it accounts for over 30% of revenue by FY27.
MedTech - the new manufacturing growth engine. QES has strategically expanded into the MedTech segment, supplying customised automated optical inspection (AOI) and automation solutions to a global medical device manufacturer. MedTech should become a key earnings driver from FY26 onwards, supported multiple confirmations and new orders to be delivered to the US and Ireland, which are expected to boost its manufacturing orderbook. Management targets annual deliveries of 8-10 MedTech tools, carrying an estimated GPM of 40-50%, at the higher quartile among the group's divisions.
Strategic China collaborations. QES is re-entering the China market through three collaboration projects in X-ray, microscopy solutions, and wafer handling equipment, which management expects to become a significant growth driver over FY26-27. The group will leverage on the ready capacity at its Batu Kawan facility to support these initiatives. Two orders under the X-ray and microscopy projects are undergoing, with delivery targeted by 1H26, while the wafer handling project with a US-listed semiconductor company remains in the pipeline. Management anticipates a maiden revenue distribution from FY26, with potentially more substantial manufacturing earnings from FY27 onwards.
Key downside risks. Earnings are exposed to order volatility across core segments, where delays or softer demand could disrupt revenue visibility. Escalation of input costs may compress margins, while the depreciation of the USD vs the MYR would further pressure earnings.
Source: RHB Research - 15 Dec 2025
ermm... boss is on the media again. kept hinting about China OEM business. Been singing the China OEM collab since the investor briefing end of last year.
Alright, fibo. Pretty much depends on your waves identification :) I am seeing minor impulse wave 1 at 0.34 to 0.515; at the back of completion of major correction wave which started back in jun'24. Wave 2 ended at 0.37. You can do the calculations for wave 3 :) the assumption of minor impulse waves in 2025 is based on the higher customer deposits seen from the qr and company generating more money. The risk to the assumption is delays in fulfilling customer orders / lower margins product mix
pro bankers. churning for weeks. boss hinting China collab, RHB provided the details of China collab recently :) From RHBInvest which I have posted two weeks ago - QES is re-entering the China market through three collaboration projects in X-ray, microscopy solutions, and wafer handling equipment, which management expects to become a significant growth driver over FY26-27. The group will leverage on the ready capacity at its Batu Kawan facility to support these initiatives. Two orders under the X-ray and microscopy projects are undergoing, with delivery targeted by 1H26, while the wafer handling project with a US-listed semiconductor company remains in the pipeline. Management anticipates a maiden revenue distribution from FY26, with potentially more substantial manufacturing earnings from FY27 onwards.
indeed, fibo. was looking at Coraza and i think its A-B-C (3-3-5) from technical perspective. I didnt go into the fundamentals of Coraza though; just looking at waves as per your technical language :) its currently at wave C which is a 5 waves; 0.675 and extension at 0.885. Just my personal opinions for your reference and maybe I am wrong as identifying the correct wave counts is the most difficult step :)
just remember to do risk mgmt will do :) qes is 5-3-5 if you will. its wave 3 or wave C now and a 5 waves in my personal opinion if it fully develops. for cross reference yeah.
Lol, fibo. Just ignore it and focus on your own investment plans. Keep sharing and learning from this platform :) as for the negativity, use mute/block if you need to.
klse market breadth looking good. jan month to date - foreign and local insti were the net buyers while retailers net seller. Foreign net buyers for 5 out of the last 6 sessions.
US stocks valuation, new US Fed chairman, midterm elections and geopolitical risks making emerging markets a better place for the foreign funds at least in the near term
timing of frontkn-wb expiry in may'26 dragging the mother share, fibo. longer term - keep an eye on Singapore geo and Taiwan geo contribution. AGTC continued to spend capex on R&D, capacity and capability in Taiwan matching tsmc's technology roadmap and these should translate to higher revenue for AGTC/Frontkn once TSMC advanced node 2nm goes into mass production (estimated by end of 2026); driven by higher frequency cleaning.
The ball is in the boss's court now given the details shared by RHBInvest :) He has to show signs of growth going into FY26 to convince more insti to buy in and for existing insti in the current top30 to increase their shareholdings.
first attempt to close gap. End of next month is the boss's turn to deliver the results after much talks about collabs and projects in progress. Show us the numbers.
from HLIB - For QES Group Bhd (KL:QES), the research house noted that distribution remains its core contributor, accounting for 65% of total revenue, while manufacturing is below long-term targets. Automotive integrated circuit demand is the key swing factor, though management sees medium-term upside from a potential hard disk drive recovery.