NationGate

[winston]

NationGate Holdings (NATGATE MK) Unwarranted Selldown Creates Opportunity

The trifurcation of fear related to AI diffusion concerns, unrelated fraud probes in Nvidia AI chip shipments and tariff fears has triggered a sharp selloff in the stock.

Despite valuation adjustments reflecting risk premiums, NationGate remains deeply undervalued at 14.6x 2025F PE, making it one of the cheapest AI-related tech stocks.

A strong growth outlook, limited impact from the AI diffusion framework and a recovery in the orders of key segments support its value proposition.

Maintain BUY. Target price: RM2.33.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

NationGate exploring new prospects to drive growth

This could come from the consumer electronics segment via active collaboration with GoldTek Technology, semiconductor segment (assembly and testing services), and computing power infrastructure and server space.

The management provided reassurance that it strictly delivers AI servers only to approved Cloud Service Partner under Nvidia’s official list, with no responsibility towards the usage or management.

“Furthermore, management noted that it has no business relationships with the entities under scrutiny.

“More importantly, we took comfort in its well-diversified order book, where only a handful of single customer accounts for more than 10% of total graphics processing server HGX system deliveries (300 to 500 systems), which helps mitigate concentration risk”.

Source: The Star

https://www.thestar.com.my/business/bus ... ive-growth

[winston]

NationGate Holdings (NATGATE MK) Fear Overdone; Opportunity Undervalued

Valuation remains compressed amid AI diffusion concerns, unrelated Nvidia fraud probes and tariff risks.

Despite risk-adjusted earnings (-15% to 2025), NationGate remains significantly undervalued, trading at just 14.7x 2025F PE, making it one of the cheapest AI-exposed tech names.

A resilient growth outlook, minimal direct exposure to AI framework risks and tariffs, and recovering orders across key verticals reinforce its investment case.

Maintain BUY. Target price: RM1.68.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

NationGate 1Q profit more than doubles on strong data segment, declares 0.25 sen dividend

By Choy Nyen Yiau

Net profit for the three months ended March 31, 2025 (1QFY2025) came in at RM53.9 million or 2.37 sen per share.

Revenue surged nearly 14 times to RM2.84 billion from RM207 million.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/757264

[winston]

not vested

1Q25: Within Expectations;

Expecting A Strong Earnings Delivery In 1H25

We expect a strong 1H25 performance, underpinned by:
a) frontloaded volume ramp-up from the server segment, and
b) the revival of growth trajectories among key clients.

Additional impetus could emerge from new customer wins and synergistic business collaborations.

While we remain cautious of lingering policy risks and potential tariff headwinds, we view the recent share price weakness as a compelling trading opportunity.

Maintain BUY on NationGate. Target price: RM1.67.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email