PETALING JAYA: Malaysian Pacific Industries
Bhd (MPI) is ramping up development expenditure with fresh commitments to wide-bandgap technologies, next-generation power modules, and robotics sensors, as management reaffirms its long-term strategy to stay ahead of structural shifts in semiconductor demand.
CIMB Research expressed optimism about MPI’s prospects for its financial year ending June 30, 2026 (FY26), supported by a healthy pipeline of power module packages for both general-purpose and artificial intelligence (AI) data centre servers, a gradual recovery in the automotive segment, and diversification into the emerging robotics market.
The research house highlighted MPI’s guidance for stronger quarter-on-quarter (q-o-q) sales and earnings in the first quarter of FY26 (1Q26), underpinned by resilient server demand, order replenishment in China’s auto market, and robust silicon carbide package demand from the US telecommunications sector.
CIMB Research reiterated a “buy” on MPI, with an unchanged target price of RM28.50 per share.
It observed that the group’s automotive revenue rose 12% q-o-q in 4Q25, marking the first sequential growth since the 4Q24, driven mainly by order replenishment in China.
However, FY25 automotive revenue fell 12% year-on-year (y-o-y).
In contrast, the industrial segment delivered a strong 19% y-o-y increase in FY25, cushioning the automotive segment’s softness.
It also projects AI server packages to account for up to 20% of group revenue for FY26, driven by a power module ramp-up for German semiconductor company Infineon beginning April 2026.
TA Research shared the positive outlook, saying that “management indicated that the automotive segment is likely to continue its recovery path, albeit at a slower pace”.
“AI server packages are expected to provide significant upside potential, supported by strong demand for generative AI,” it added.
The research house highlighted that China operations should remain profitable despite stiff price competition, though management warned that the potential imposition of hefty US semiconductor tariffs could disrupt the global supply chain.
Reflecting improved prospects, TA Research revised its target price for MPI from RM21.63 to RM27.20, while maintaining a “hold” rating.
“With a robust net cash position of approximately RM988mil, the group will continue to invest in new plants and new technologies to capitalise on the next wave of opportunities,” TA Research said, citing projects such as a wide-bandgap technology plant in Ipoh and a new factory in Suxiang, China, set to begin production soon.
