Friday, 27 April 2012

MPI up 1% on dividends, OSK cuts earnings forecast and TP

KUALA LUMPUR (April 27) : MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) rose as much as 1% as investors bought the stock to capitalise on its dividends.

MPI shares added three sen to RM3 before trading lower at RM2.99 at lunch break with about 52,000 shares changing hands. The stock had risen despite a downward revision to the company’s earnings forecast and share price.

In a note, OSK Research Sdn Bhd said it has revised downwards its earnings forecast for MPI by RM30.2 million and RM1.2 million for financial years ending June 30, 2012 (FY12) and 2013 respectively. This takes into account MPI’s latest quarterly financials.

The earnings forecast revision has prompted OSK to lower its target price for MPI shares by 1.6% or six sen from RM3.70 to RM3.64 while maintaining its “trading buy” call for the stock.

MPI posted a net loss of RM7.43 million in the third quarter ended March 31, 2012 against a net profit of RM5.05 million a year earlier as revenue fell18% to RM275.76 million from RM334.82 million. The company said revenue fell as it registered lower sales in major markets including European and Asian countries apart from the US.

Cumulative nine-month net loss came to RM33.26 million against a net profit of RM56.18 million previously while revenue fell 19% to RM870.6 million from RM1.07 billion.MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for FY12.

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