KUALA LUMPUR: Malaysian Pacific Industries
Bhd (MPI) rose in early trade on Friday after announcing the acquisition of Infineon Technologies Thailand Ltd (IFTH) for US$78mil (RM328mil).
The semiconductor group emerged as the top gainer on Bursa Malaysia, rising 54 sen, or 1.89%, to RM29.08 at 9.35 am. The counter has climbed nearly 15% year-to-date.
MPI is acquiring IFTH from Spansion LLC, Spansion Inc and Cypress Semiconductor Corp, taking over its plant in Nonthaburi, Thailand.
CIMB Securities said the deal strengthens MPI’s partnership with Infineon, diversifies its footprint into Thailand, and opens scope for margin improvements at IFTH.
“The purchase consideration implies 0.7x IFTH’s FY9/24 net assets of RM471mil, which we view as an attractive entry valuation given that it allows MPI to acquire the assets below book value.
“IFTH reported a net profit of RM7.72mil in FY9/23 but slipped into a net loss of RM7.8mil in FY9/24, mainly owing to negative forex impact. MPI indicated that IFTH is currently profitable, albeit with a lower profit margin compared with MPI’s three-year average net margin of 9.0%,” CIMB said.
The group expects to complete the acquisition by the second quarter of calendar year 2026.
CIMB said that given MPI’s strong net cash position of RM988mil as at end-June 2025, the group can comfortably finance the acquisition internally. It added that proceeds from the Dynacraft disposal (RM140mil) will partly fund the deal.
To recap, MPI is expected to record a net gain of RM99.2mil from the Dynacraft disposal in February 2025, with completion targeted by 1QCY26F.
CIMB has raised its FY6/27–28F EPS forecasts by 4.7%–7.5% to reflect potential earnings contributions from IFTH.
“We expect IFTH to account for 8–12% of MPI’s FY27–28F revenue, with no contribution expected in FY6/26F. Following this upgrade, we now project the group to deliver a three-year (FY25–28F) core net profit CAGR of 24%,” it said, adding that it maintained a “buy” on MPI with a higher target price of RM35.
