MPI (3867) : MPI top pick in semicon sector: CIMB Research
KUALA LUMPUR: CIMB Equities Research is keeping Malaysian Pacific Industries (MPI) as its top pick for the semiconductor industry due to its strength in operating efficiency and better traction in higher margin packages.
“Stronger contributions from its communications and automotive segments, higher dividend payouts and potential M&A activities are potential re-rating catalysts,” it said on Thursday.
On the earnings for the first quarter ended Sept 30, 2014, the research house said MPI’s core net profit was in line with expectation at 23% of its and consensus full-year estimates.
Core net profit grew by 13.7% on-year, driven by stronger shipment volume from higher margin packages and lower material cost.
“We maintain our EPS forecasts, which imply 2013-16 EPS CAGR of 48%, and keep our Add rating, with an unchanged target price of RM7.50, based on 14.3 times CY16 P/E (its two-year historical mean),” it said.
http://www.thestar.com.my
KUALA LUMPUR: CIMB Equities Research is keeping Malaysian Pacific Industries (MPI) as its top pick for the semiconductor industry due to its strength in operating efficiency and better traction in higher margin packages.
“Stronger contributions from its communications and automotive segments, higher dividend payouts and potential M&A activities are potential re-rating catalysts,” it said on Thursday.
On the earnings for the first quarter ended Sept 30, 2014, the research house said MPI’s core net profit was in line with expectation at 23% of its and consensus full-year estimates.
Core net profit grew by 13.7% on-year, driven by stronger shipment volume from higher margin packages and lower material cost.
“We maintain our EPS forecasts, which imply 2013-16 EPS CAGR of 48%, and keep our Add rating, with an unchanged target price of RM7.50, based on 14.3 times CY16 P/E (its two-year historical mean),” it said.
http://www.thestar.com.my
