PETALING JAYA: Malaysian Pacific Industries
Bhd (MPI) appears to be resilient, recording an eighth consecutive quarter of year-on-year (y-o-y) growth in revenue in its latest second quarter ended Dec 31 (2Q25).
The latest quarter saw its revenue rise 18% y-o-y to RM626.6mil as the Asian and European regions remained key contributors; while the US orders saw a strong rebound of some 54% y-o-y following clearer policies on the tariff front.
Core net profit jumped 83.8% y-o-y to RM61.2mil on stronger loadings, scale benefits and a lower effective tax rate, despite the US dollar depreciating by 6% y-o-y against the Malaysian ringgit.
RHB Research in its report said MPI’s results are in line with its expectations and it believes there will be strong demand from key customers, which should underpin a stronger financial year 2026 (FY26) and beyond.
Other factors include the reaccelerating China automotive demand and emerging opportunities in robotics power packages, it noted.
The company had also reaffirmed a sizeable capital expenditure cycle that’s focused on new lines for server, automotive and power management applications, expansion in Thailand and its continued ramp-up in Suxiang, China.
“Additional structures will be built at the new Bangkok site that sits on a 75,000 sq m land with a floor space of 26,000 sq m.
“Its NOR flash (a type of non-volatile memory used to store critical software in vehicles) is expected to be a key revenue driver, while incremental Thailand capacity provides flexibility as the S-site approaches full utilisation by FY27,” it said.
RHB Research maintained its “buy” call on the counter and its earnings estimates with a target price of RM35 at an unchanged 30 times 2026 forecast price-to-earnings ratio (PER) or plus one standard deviation from its five-year mean.
Meanwhile, the group also noted it expects the global semiconductor industry to remain uncertain with the continued imposition of US tariffs on certain European countries, rising commodity prices, and a weaker US dollar.
It however indicated that it remains focused on cost optimisation through increased automation and process improvements and wants to refine its strategy to deepen exposure to renewable energy, electric vehicles and artificial intelligence-driven demand.
TA Research was more conservative and put its call under review, pending an analyst briefing later, with an unchanged target price of RM33, pegged to a 30 times 2026 forecast earnings which was maintained.
Kenanga Research retained its target price at RM31.70, based on a 2026 forecast PER of 29.3 times and maintained its market performance rating.
“Potential risks to this call include any slower-than-expected recovery in the global semiconductor sector, supply chain disruptions from escalating trade tensions, any deterioration in the trade environment, and a weakening dollar,” the research house said.
