Malaysian Pacific Industries

[winston]

Analysts see MPI's valuation as attractive, supported by strong growth momentum

by Tan Siew Mung

Valuation is attractive after plunging 41.61% to RM29.78 from its peak of RM51 on Dec 1, 2021,

Hitting new records in FY22/FY23 with earnings growth of 20.1%/10.7%.

Manpower limitations, supply chain disruptions, rising inflation and Covid-19 pandemic.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... h-momentum

[winston]

not vested

MPI expects operating environment to remain challenging

Operating environment will remain challenging arising from supply chain disruptions, inventory adjustment, inflation and manpower limitations.

Covid-19 movement control imposed in Suzhou and Greater Shanghai areas will continue to have an adverse effect on its Suzhou factory.

Posted a 7.2% higher net profit of RM80.5mil, or earnings per share of 40.47 sen against RM75.1mil, or 37.85 sen in the same quarter last year.

Revenue for the quarter under review stood at RM612mil against RM537.34mil in the same quarter in the preceding year.

For FY22, MPI posted a net profit of RM328.85mil, up 21% to from RM271.82mil last year while revenue rose 21.5% to RM2.42bil against RM1.99bil previously.

Source: The Star

https://www.thestar.com.my/business/bus ... hallenging

[winston]

not vested

Facing near-term setbacks in China

FY6/22 results were in line, at 102% of our full-year net profit forecast, but ahead of Bloomberg consensus’ at 105%.

We expect lower sales and NP in FY23F, amid softer semiconductor demand, but still like MPI to ride on structural growth opportunities in SiC and GaN.

Downgrade to Hold with a lower RM35 TP, based on a lower 19x CY24F P/E.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E5CB5DE6E8

[winston]

Malaysian Pacific Industries
A bumpy ride ahead in China

MPI is guiding for a weaker near-term outlook due to softer semiconductor demand in China, but Malaysian operations will continue to support growth.

Maintain Hold with lower RM32 TP, based on lower 17x CY24F P/E (-1 s.d.).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 027CB40355

[winston]

not vested

Inching towards recovery

3QFY24 core net profit beat our/Bloomberg consensus’s forecasts, aided by China’s telecom and mobile demand, leading to better Suzhou performance.

Management is guiding sequential improvements in auto/industrial projects ramp up; we raise our FY24-26F EPS by 6-15% on higher utilisation rate.

Maintain Reduce with a higher TP of RM27.40.

Valuation looks steep at 36.9x FY25F P/E, at more than 1 s.d. above its 10-year mean of 19x.

Source: Phillips

https://rfs.cgsi.com/api/download?file= ... 9C21663F8B