RHB Research has maintained its BUY call on Coraza Integrated Technology Bhd and raised its target price to RM1.34 from RM1.12, citing record revenue, stronger earnings and a growing semiconductor order pipeline.
The research house said the stock is trading at about 20 times FY27 forward earnings, below its peers’ average of more than 30 times despite an expected three-year earnings growth rate of 28%.
Coraza recorded record 1H26 revenue of RM95.2 million while core earnings rose 14% year-on-year to RM8.6 million. RHB said the performance was within expectations, accounting for 38.4% of its full-year forecast and 44.3% of consensus estimates, with stronger earnings expected in the second half.
The performance was supported by higher volumes and robust demand from both front-end and back-end semiconductor customers. Sheet metal fabrication revenue jumped 25.5% year-on-year while the machining segment remained broadly flat. EBITDA margin also improved by 0.7 percentage points to 19.9%.
In 2Q26, revenue climbed 20.1% year-on-year to a record RM51 million while core earnings increased 16.4% to RM4.7 million, supported by stronger semiconductor orders.
RHB expects growth to accelerate as new products secured earlier move into mass production through 2H26 and 2027. It also sees opportunities from supply chain diversification, new development programmes and localisation, while enhanced secondary processing capabilities and capacity expansion at Plants 3 and 5 could strengthen Coraza’s market position.
The research house maintained its earnings forecasts but raised its valuation multiple to 24 times from 20 times, supporting the higher target price.
As of 11.04 am, the stock price dropped 1.71% to RM1.15.
