Summary For October 2026
Portfolio @ End of Oct26
Following a disastrous month of Sep26, KLCI continues to tumble another 2.2% in Oct26.
My portfolio could not avoid to lose another 1.8% as well, mainly due to AAGB & MCLEAN.
Other tech related stocks were doing quite well in Oct26, especially MI which surged 25% in the month pending the listing of MI Material in SGX & FY26Q3 result announcement.
The net profit improved by 21% QoQ .
Despite the commendable financial result, MI's share price dropped 11% from RM6.80 to RM6.10 in 5 trading days following the result announcement.
This is probably due to the bear sentiment among AI stocks worldwide.
MI Material is even worse. It plunged 35% from IPO price of SGD1.80 to SGD1.17 in a week.
While the strong momentum in both SEBU & SMBU is expected to continue in FY26Q4, there might be an one-off MIM listing fee (~RM12mil) & special employee bonus provision (~RM10mil) in Q4.
Its SMBU new Senai plant is running ahead of schedule, with 3 production lines expected to be ready in Q4 of 2026 and another 4 lines in Q4 of 2027.
The Tainan plant with 13 production lines currently (annual capacity 4,000 - 5,000 solder balls) will undergo expansion in 2028-29 to reach annual capacity of 6,640 to 8,560 solder balls.
Besides, MI also plans to set up 2 production lines and one R&D demo center in Texas by end 2028 to serve a new US customer who is setting up one of the world's largest fabs.
Overall, total production lines will increase from 19 to 33, while total capacity will double to 11,340 - 15,260 solder balls annually by 2029.
Even though VTBU suffered widening pre-tax loss of RM9.4mil in this quarter, it is expected to be the next growth engine for MI.
Nevertheless, investors might need to wait until at least year 2028.
Most US AI related stocks suffered heavy sell down in the past week, probably due to concern of negative free cash flow in recent tech giants' quarter results and US midterm election results.
Democrats who won the election in Texas is said to be anti data centers. There is concern that AI infrastructure spending might slow down significantly.
In the past one week, memory stocks are the worst casualties. Sandisk and Micron lost 28% and 22% respectively.
Nvidia, ASML & Avago all fell 10%. Intel and AMD also dropped 14% & 12% respectively.
In Oct26, I decided to buy my second batch of MCLEAN's shares as I still have confident in its growth.
Unfortunately for me, its share price keep dropping to below 60sen during this AI stocks rout.
Its recent share price might also be dragged down by the private placement news and the placement price has finally been fixed at only 60sen.
Meanwhile, I also sold all my EUPE shares at 7% loss.
After Smetric-WA, this is another sad story for me because once my EUPE was sitting on a paper gain of over 70%.
EUPE keeps delaying its Belfield project and I'm not sure whether it can be launched in 2027.
During Budget 2027, our PM has announced that the government will build at least 2,500 units of Rumah Madani on an 11-acre land in Belfield, with 70% reserved for Bumiputera buyers.
Will this news negatively affect EUPE's Circadia Belfield project?
It might, but I think only slightly because both are different types of products.
Anyway, in the end, Belfield area will definitely get more crowded.
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