Coraza on track for another record earnings year

PETALING JAYA: Coraza Integrated Technology Bhd is targeting another record earnings year for the financial year ending Dec 31, 2026 (FY26) supported by a RM220mil order book, robust semiconductor demand and improving operational efficiencies, according to TA Research.

The brokerage said more than half of the integrated engineering support services provider’s outstanding orderbook is attributable to the semiconductor sector.

The company continues to benefit from the ongoing semiconductor upcycle, driven primarily by artificial intelligence (AI)-related investments and trade diversion.

Order visibility from key customers serving both the front-end and back-end semiconductor segments remains strong.

“In addition, the group is beginning to see more meaningful contributions from new product introductions, supported by enhanced production capabilities following investments in new machinery and equipment that enable the manufacturing of larger and more complex components,” the brokerage said.

For the first half of FY26 (1H26), Coraza’s core profit rose 31.5% year-on-year to RM10.2mil, while revenue increased 21.5% to RM95.2mil.

According to TA Research, Coraza’s management remains confident of delivering a strong 2H26 performance, supported by robust order flows, greater economies of scale and improved operational efficiencies.

The group recorded revenue and core profit of RM160.2mil and RM16.8mil, respectively, in FY25.

On operating costs, TA Research said the group’s management indicated that the impact of the minimum wage increase on its operating costs remains minimal.

Following the commencement of operations at its P3 facility, the group operates six facilities with a combined production floor space of approximately 415,000 sq ft.

To support further expansion, it acquired a parcel of land in Nibong Tebal, Penang, for RM13.5mil in May 2026.

The new P6 facility is expected to commence operations by mid-2027 following refurbishment works, adding approximately 90,000 sq ft of production floor space.

Reflecting the stronger growth outlook, TA Research raised its FY26, FY27 and FY28 earnings forecasts by 18.9%, 20.7% and 18.7%, respectively, after factoring in higher sales assumptions from key customers.

It also upgraded the stock to “buy” from “hold” and raised the target price to RM1.56 from RM1.29.