MPI profit plunge due to lower consumer electronics demand

MALAYSIAN Pacific Industries Bhd (MPI) saw a plunge in its net profit for the second quarter ended Dec 31, 2022 (2QFY23) mainly due to lower demand for the consumer electronics market.

It posted a net profit of RM18.33 million in the quarter, down 79% from the same period last year, according to its exchange filing yesterday. It posted RM526.42 million in revenue, down 13% from the same period a year earlier.

It said the negative impact of lower profits was partially offset by the appreciation of USD versus RM in 2QFY23, adding that the USD has since weakened towards the quarter end.

For the cumulative six-month period, MPI recorded net profit of RM71.03 million, down 57% compared to the same period last year, on the back of RM 1.09 billion in revenue, down 9% from the same period in FY22.

The group expects the operating environment to be challenging in the next coming months, especially in its China operation due to the overall weak demand in the country and the current geopolitical tension.

“However, the group expects the demand in China will improve as it enters an endemic phase,” it said.

MPI subsidiaries are involved in manufacturing, assembling, testing and sale of integrated circuits, semiconductor devices, electronic components and leadframes sold to customers world-wide.

In yesterday’s trading, MPI closed 74 sen to RM33.74, giving it a market capitalisation of RM7.1 billion. The stock is up 17.23% year-to-date. – TMR