MPI Q3 net profit slumps more than one-third

CIMB Equities Research has upgraded Malaysian Pacific Industries (MPI) to Add from Hold

KUALA LUMPUR: Chip maker Malaysian Pacific Industries Bhd (MPI) saw its earnings take a hit in the third quarter ended March 31, 2019 due to lower revenue and foreign exchange (forex) loss and it expects the operating environment to remain challenging.

It said on Friday the challenges were due to the uncertainties in the global econonomy for the rest of its financial year ending June 30, 2019.

“The management will continue to improve out operational efficiencies with more automation and digitalisation and to enhance product development to strengthen the group's posotion in the chose sectors,” it said.

In Q3, its net profit fell by 35.4% to RM16.76mil from RM25.98mil a year ago. Its revenue decined by 9.8% to RM330.10mil from RM366.33mil. Earnings per share were 8.82 sen compared with 13.68 sen.

Despite the decline in its financial performance, it declared an interim dividend of 17 sen compared with 19 sen a year ago.

MPI said revenue for the Asia, US and Europe segmewnts were lower by 8%, 28% and 1% respectively from a year ago.

For the nine months, its net profit fell by 5% to RM98.27mil from RM103.42mil. Its revenue declined by 3% to RM1.14bil from RM1.15bil.