KUALA LUMPUR (Feb 10): Malaysian Pacific Industries Bhd's (KL:MPI) first-half results ended Dec 31, 2025 (1HFY2026) slightly exceeded estimates, but analysts remain cautious on its outlook due to memory chip shortage and unfavourable currency trends.
TA Securities, in a note on Tuesday, said while MPI's 1HFY2026 results met expectations, it anticipates a weaker second-half performance due to unfavourable foreign exchange movements.
The house said that excluding foreign exchange loss of RM6.1 million and other exceptional items, MPI’s 1HFY2026 core profit of RM116.3 million came in at 56.2% and 56.9% of its and the consensus’ full-year estimates, respectively.
Separately, RHB Research said MPI's 1HFY2026 results came in "slightly ahead of estimates" but its outlook remains conservative — given potential headwinds from the ongoing memory chip shortage situation, forex trends and Trump's uncertain tariff enforcement.
"Profitability at both its China and Malaysia operations continued to improve, supported by higher utilisation rates and operational efficiency gains," RHB added in a note on Tuesday.
The house noted MPI's 1HFY2026 core Patami (profit after tax and minority interests) rose 58.2% year on year, underpinned by stronger loadings and economies of scale.
Moving forward, RHB said strong programme visibility from key customers should underpin a stronger FY2026 and beyond, alongside reaccelerating China automotive demand and emerging opportunities in robotics power packages.
The house said MPI reaffirmed a sizeable capex cycle focused on new lines for server, automotive and power management applications, as well as expansions in Thailand and Suxiang, China.
"Additional structures will be built at the new Bangkok site (75k sqm land; 26k sqm floorspace). NOR flash (automotive) is expected to be a key revenue driver, while incremental Thailand capacity provides flexibility as the S-site approaches full utilisation by FY2027."
MPI had recently finalised the US$76.9 million acquisition of the formerly known Infineon Technologies Thailand Ltd, now Carsem Semiconductor Bangkok Ltd (CSB).
“We view the completion of the CSB acquisition as a positive medium-term catalyst, providing an immediate 15% uplift to MPI’s installed capacity,” said CIMB Securities in a separate note.
Both CIMB and RHB have "buy" calls on MPI with a target price (TP) of RM41 and RM35 respectively, while TA Securities kept the stock under review with a TP of RM33, pending analysts' briefing on Tuesday.
According to AskEdge data, MPI shares are currently trading at a trailing price-to-earnings ratio (PE) of 35 times, and price to book value of 2.9 times. At the current price of RM31.58, MPI is valued at some RM6.3 billion.
Read also:
Malaysian Pacific Industries sees 42.6% rise in 2Q net profit from higher product sales, better margins