Latest news with #MalaysianPacificIndustriesBhd
Malaysian Reserve
29-05-2025
- Automotive
- Malaysian Reserve
Malaysian Pacific Industries retains Buy, target price lowered to RM22.58
Malaysian Pacific Industries Bhd posted relatively subdued quarterly earnings in 3QFY25, with revenue declining marginally by 1.2% YoY to RM520m – versus RM526m in 3QFY24 – underscoring persistent softness across key end markets. Profitability remained under pressure, with core profit after tax and minority interests (PATAMI) plunging 23% year-on-year , primarily due to less favourable product mix, and earnings before interest, taxes, depreciation, and amortisation margin narrowing by 4 percentage points YoY to 23%. Geographically, Europe sales weakened (-7.4% quarter-on-quarter, -5.5% YoY) as the automotive segment remained lacklustre. US sales saw a notable sequential pickup of +23.5% QoQ, but the region continued to post a 6.3% YoY contraction, likely attributable to prolonged inventory adjustments, in light of macroeconomic uncertainty. Cumulatively, U.S. sales in 9MFY25 contracted by 20.2% YoY, dragging MPI's core PATAMI by 14.5% YoY to RM109.1m – making up only 55% of our full-year estimate and 69% of consensus – falling short of expectations. The group declared a second interim dividend of 25 sen per share, bringing total year-to-date dividend per share to 35 sen. As we roll forward our valuation, we reiterate our Buy call, but with a lower target price of RM22.58 (from RM26.80), based on 27x price-to-earnings ratio (PER) (-1.5 standard deviation of 3-year average forward PER) applied to FY26F earnings per share of 83.6 sen. – BIMB Securities Sdn Bhd (May 29, 2025) (Calls by analysts tracked by Bloomberg: 5 Buy, 2 Hold, 1 Sell; Consensus target price: RM21.99)
New Straits Times
29-05-2025
- Automotive
- New Straits Times
MPI shares tumble 10 pct in a week amid Wolfspeed bankruptcy concerns
KUALA LUMPUR: Shares of Malaysian Pacific Industries Bhd (MPI) slid about 10 per cent over the past week to close near RM18.00, amid reports that key silicon carbide (SiC) customer Wolfspeed Inc. may be preparing to file for Chapter 11 bankruptcy protection, said CIMB Securities Sdn Bhd. The reports, first published by Reuters and The Wall Street Journal, suggest that Wolfspeed is seeking to restructure its debts under court supervision while maintaining operations. This development sparked market concerns over possible supply chain disruptions for MPI. Despite the market jitters, CIMB noted that, based on its channel checks, MPI is still receiving SiC wafer volume loadings from Wolfspeed, indicating no immediate supply disruptions. "We believe the impact on MPI would be limited, as Wolfspeed is estimated to account for less than 5 to 6 per cent of the group's FY6/24 revenue. Importantly, MPI appears to have the operational flexibility to mitigate any potential fallout, with the option to reallocate floor space to other customers, such as Infineon, to support the ongoing ramp-up of new power module packaging at its Carsem S-site facility." This strategy, CIMB added, should help cushion MPI from any delays in Wolfspeed's restructuring process. The firm has reiterated its 'Buy' rating on MPI with an unchanged target price of RM30.00, based on a 25x CY26F P/E, which is two standard deviations below the OSAT sector's mean. "We continue to favour MPI for its unique SiC and gallium nitride (GaN) exposure and favour it as a proxy for the growing demand for power semiconductors in data centres. The group also has a strong balance sheet with a net cash position of RM990 million (RM4.72/share) as of end-Mar 2025," the research house said. CIMB Securities has pointed out several reasons why Malaysian Pacific Industries Bhd (MPI) could see its value increase, such as a quicker recovery at Carsem Suzhou (CSZ), gaining new customers and designs in the fast-growing SiC and GaN areas, a faster bounce back in the automotive and electric vehicle (EV) markets, and the chance of a bigger dividend payout. However, the research house cautioned that downside risks remain, particularly a slower sector recovery, delays in new capacity expansions, and unfavourable currency movements, especially if the ringgit continues to strengthen against the US dollar. In its latest quarterly update, MPI reported a 2 per cent quarter-on-quarter (QoQ) dip in revenue for 3QFY6/25, primarily due to sales contractions in Asia (-5.7 per cent) and Europe (-7.4 per cent). This decline was partially offset by a robust 23.5 per cent QoQ rebound in US sales, driven by sustained demand for power packaging solutions at Carsem Malaysia (CSM). The company's operational strength was further reflected in a 20 per cent rise in minority interest expense, indicating stronger performance at CSM. For the nine-month period ended FY25 (9MFY25), MPI's revenue in US dollar terms grew 5.5 per cent year-on-year (YoY) to US$354 million, supported by improved contributions from Asia and Europe. However, in Ringgit Malaysia terms, revenue growth was modest at 0.3 per cent YoY, held back by foreign exchange losses stemming from the ringgit's appreciation. This led to a realised forex loss of RM16.9 million during the period. Despite these currency headwinds, MPI delivered a 35 per cent YoY surge in net profit to RM110 million, largely driven by the turnaround at CSZ, a testament to the group's resilience and operational agility in navigating a volatile macroeconomic environment.
The Star
28-05-2025
- Business
- The Star
MPI 3Q profit up 22%, remains cautious over US tariffs
KUALA LUMPUR: Malaysian Pacific Industries Bhd (MPI) will actively monitor the impact of the US administration's newly announced reciprocal tariffs, which have added to global economic uncertainties. 'Barring any unforeseen circumstances, the Board expects the performance for this financial year to be satisfactory,' the semiconductor company said in a filing with Bursa Malaysia. In the third quarter ended March 31, MPI's net profit rose 22.4% to RM40mil, or earnings per share of 20.12 sen compared with RM32.7mil, or 16.47 sen in the year-ago quarter. The higher profit was mainly due to improved operating margin and lower operating cost. Revenue, however, fell marginally to RM519.9mil against RM526mil last year. MPI said the lower revenue for the quarter under review was mainly due to the weaker foreign exchange rate recorded against the corresponding quarter of the last financial year. For the nine months to March 31, MPI posted a net profit of RM110.2mil, up 35.4% from RM81.4mil while revenue grew to RM1.57bil against RM1.56bil previously. MPI has declared a second interim single-tier dividend of 25 sen for the quarter ended March 31, to be paid on June 26.
