MPI’s 1Q earnings rise on tech upcycle

By ASILA JALIL / graphic by TMR 

MALAYSIAN Pacific Industries Bhd (MPI) is expected to have a satisfactory performance for its financial year ending June 30, 2022, as the semiconductor industry thrives amid disruptions caused by the Covid-19 pandemic. 

In a Bursa filing yesterday, the tech company stated that the industry continues to show resilience and growth despite the challenging operating environment, manpower limitations and supply chain disruptions. 

For its first quarter ended Sep 30, 2021 (1QFY22), MPI’s net profit rose 47.7% year-on-year (YoY) to RM81.68 million buoyed by better performance across all segments. 

Revenue for the quarter was up 32.7% YoY to RM584.53 million due to growth in Asia, the US and Europe segments which posted an increase of revenue by 30%, 31% and 43%, respectively. 

MPI’s pretax profit climbed 54.1% YoY to RM112.63 million on higher revenue across all segments and effective cost management. 

Against the preceding quarter, 1QFY22 revenue was up 8.8% from RM537.3 million in 4QFY21 with the Asia and US segments recording higher revenue by 11% and 14%, respectively, while the Europe segment was lower by 1%, the company’s filing noted. 

MPI’s pretax profit rose 17.3% from RM96 million recorded in preceding quarter due to higher revenue and the strengthening of the US dollar against the ringgit. 

MPI’s board has declared a first interim single-tier dividend of 10 sen per share for the quarter to be paid on Dec 23, 2021. 

MPI shares rose 22 sen to RM48.14 yesterday, giving it a market value of RM9.55 billion.