MBSB Investment Bank Bhd (MBSB Research) has initiated coverage on SkyeChip Bhd with a non-rated stance but fair value of RM1.26 a 48% premium over its IPO price of 0.88.
The house noted a double-digit earnings growth potential of +25.9% in FY26, +20.1% in FY27 and +18.8% in FY28, supported by expanding silicon IP and custom ASIC demand alongside its alignment with NIMP 2030 initiatives, analysts said.
SkyeChip Bhd , an IC design company founded in 2019 and headquartered in Penang, specialises in silicon IP and custom application-specific integrated circuits, with core exposure to China and Taiwan markets which account for over 90% of revenue.
The group currently operates with 365 technical personnel and holds 36 patents with another 77 pending, while leveraging strategic participation in global industry standards bodies such as JEDEC, UCIe and PCI-SIG, the analysts noted.
According to MBSB Research, SkyeChip’s competitive edge lies in its full intellectual property ownership which enables wider monetisation across customers, supported by collaborations with foundries and electronic design automation tool providers including access down to 3 nanometre process technology.
The company also benefits from early government-backed access to ARM Flexible Access design tokens which helps reduce upfront licensing costs and shorten time-to-market.
The research house highlighted that SkyeChip has delivered strong historical growth, with revenue more than doubling between FY23 and FY25 to RM119.5 million driven by memory interface IP and first-time contribution from ASIC projects.
However, margins have moderated due to higher headcount, depreciation and expansion costs as the group scales up operations.
Looking ahead, MBSB Research expects continued expansion in AI related semiconductor demand and ongoing project execution to support growth, with an unbilled order book of RM130.3 million underpinning visibility.
Key risks include reliance on key management, rising competition, execution capability and potential loss of pioneer tax status which could raise effective tax rates.
