RHB Research has upgraded Malaysian Pacific Industries (MPI) to buy with an unchanged target price of RM11.21, which is a 27% upside plus 3.8% FY19F yield.
KUALA LUMPUR: Malaysian Pacific Industries
Bhd (MPI) saw RM184.7mil erased from its market capitalisation at midday on Tuesday after its share price fell to the lowest since March 2017.
At midday, it was down 88 sen to RM10.36. It was the top loser. There were 449,400 shares done.
The fall in its share price saw its market capitalisation reduced to RM2.174bil.
The semiconductor company had announced a decline in earnings for the second quarter ended Dec 31, 2017.
Earnings fell nearly 25% to RM41.2mil from RM54.98mil due toi higher material costs and the stronger ringgit.
CIMB Equities Research lowered its target price for MPI to RM12 compared with the previous target of RM15.
The research house said on Tuesday the lower target price was based on a lower 13.5 times CY19 P/E, a 10% discount to the target sector P/E of 15 times in view of the gradual pick-up in A&I and negative sentiment from the strengthening of the ringgit against US$.
Globetronics also saw its share price fall 31 sen to RM6.34, the lowest since Dec 20, 2017.
The decline saw RM88.52mil erased from its market capitalisation and reduced to RM1.810bil.
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