The company's board expects the performance for the financial year to be satisfactory.
PETALING JAYA: Despite uncertainty in the semiconductor industry and possible impositions from US tariffs, the growing demand for artificial intelligence and data centres will continue.
In a filing with Bursa Malaysia, Malaysian Pacific Industries
Bhd (MPI) said the demand will benefit the industry and offset the weaker demand from the automotive sector.
The group is involved in manufacturing services for semiconductor packaging and testing.
Previously, analysts said there would be a challenging near-term outlook for the auto semiconductor sector. However, the group is set to remain optimistic about its financials this year.
“The board expects the performance for the financial year to be satisfactory,” it said in the statement.
For the second quarter ended Dec 31, 2024, the group posted a higher revenue of RM530.5mil compared to RM522.7mil in the same quarter a year ago.
The group said revenue was higher due to its Asian and European segments that were higher at 11% and 7%, respectively.
However, revenue from the United States was lower by 30% compared to the same quarter a year ago.
Net profit was recorded at RM40.03mil for the quarter under review compared to RM32.15mil a year ago on the back of lower operating cost.
For its first quarter ended Sept 30, 2024, the group had posted a profit of RM30.13mil on the back of a higher revenue and lower operating costs as well.
This had helped offset the impact of an unfavourable foreign-exchange rate.
Its revenue for the quarter rose to RM516.57mil, as operating expenses dropped to RM19.79mil.
It had a cash balance of RM1.06bil with total borrowings of RM69.83mil.
As for the previous full year, the group registered a revenue of RM1.04bil, slightly higher than the RM1.03bil recorded in the corresponding period for the financial year ended June 30, 2024.
“Revenue for the Asia and Europe segments were both higher by 9% and 7% respectively, while the US segment was lower by 26%.
“Profit was also higher at RM70.16mil, compared to RM48.67mil a year ago,” it noted.
The group’s board did not recommend any interim dividend for the quarter ended Dec 31, 2024 but for the financial year-to-date, it had declared a total single-tier dividend of 10 sen per share, amounting to RM19.9mil which has been paid out.
Meanwhile, the group said its wholly-owned subsidiary, Dynacraft Industries Sdn Bhd (DCI), is proposing to dispose of two parcels of land together with its buildings in Bayan Lepas, Penang for RM140mil.
The leasehold land measures about 40,487 ha.
The group said DCI had ceased its manufacturing of leadframes operations; the properties were not needed anymore.
The group said the bulk of its proceeds will be distributed to its shareholders.
“We expect to realise an estimated net gain on disposal of approximately RM99.2mil,” it noted.
The group’s shares closed at RM20.96 for a market capitalisation of RM4.4bil.
