KUALA LUMPUR (Jan 31): RHB Research Institute is maintaining its market perform outlook on MALAYSIAN PACIFIC INDUSTRIES [] (MPI) Bhd while its fair value estimate was raised to RM3.47.
The research house said on Tuesday its FV estimate was raised after it had increased the benchmark forward target price-to-book value from 0.8 times to 1.0 times.
On Monday, MPI reported a 6MFY06/12 net loss of RM25.8 million on the back of weak demand for MLP and broad-based packages due to slumping sales for electronic devices during the quarter.
“We would not be surprised if management guides for a revenue decline of 5%-10% qoq for 3QFY06/12 at the briefing later Tuesday, similar to peers’ recent guidance.
“We reduced our FY06/12 net profit forecast from RM6.5 million to RM2.5 million. However, we have maintained our assumptions of a pick-up in 2HCY12, and thus our FY13-FY14 estimates are relatively unchanged,” said RHB Research.
The research house said on Tuesday its FV estimate was raised after it had increased the benchmark forward target price-to-book value from 0.8 times to 1.0 times.
On Monday, MPI reported a 6MFY06/12 net loss of RM25.8 million on the back of weak demand for MLP and broad-based packages due to slumping sales for electronic devices during the quarter.
“We would not be surprised if management guides for a revenue decline of 5%-10% qoq for 3QFY06/12 at the briefing later Tuesday, similar to peers’ recent guidance.
“We reduced our FY06/12 net profit forecast from RM6.5 million to RM2.5 million. However, we have maintained our assumptions of a pick-up in 2HCY12, and thus our FY13-FY14 estimates are relatively unchanged,” said RHB Research.
