MPI (3867) - Affin Hwang Research downgrades MPI to Hold
KUALA LUMPUR: Affin Hwang Research has downgraded MPI to a Hold from Buy with a target price of RM5.25 based on unchanged 14 times CY15 EPS.
"The stock price has done well, and we think that the good news is already in the price. In view of the 5% downside, we downgrade MPI from a Buy to Hold.
"Key upside risk lies in positive earnings surprisedue to strong demand and lower raw material prices while an imminent inventory correction may deem our forecast to optimistic," it said in a note on Friday.
The research house said MPI’s 2QFY15 results were surprisingly strong, due to lower raw material cost and a firmer US$.
The firmer US$ could once again play a role in the quarter ahead, negating the weaker operating revenue that management is expecting.
"We nevertheless believe that the positive impact from forex is short term and a long term relationship with clients means that these benefits need to be shared. In view of this, and the prolonged semiconductor upcycle, we think that earnings could peak in FY15," it said.
http://www.thestar.com.my
KUALA LUMPUR: Affin Hwang Research has downgraded MPI to a Hold from Buy with a target price of RM5.25 based on unchanged 14 times CY15 EPS.
"The stock price has done well, and we think that the good news is already in the price. In view of the 5% downside, we downgrade MPI from a Buy to Hold.
"Key upside risk lies in positive earnings surprisedue to strong demand and lower raw material prices while an imminent inventory correction may deem our forecast to optimistic," it said in a note on Friday.
The research house said MPI’s 2QFY15 results were surprisingly strong, due to lower raw material cost and a firmer US$.
The firmer US$ could once again play a role in the quarter ahead, negating the weaker operating revenue that management is expecting.
"We nevertheless believe that the positive impact from forex is short term and a long term relationship with clients means that these benefits need to be shared. In view of this, and the prolonged semiconductor upcycle, we think that earnings could peak in FY15," it said.
http://www.thestar.com.my
