Affin cuts Malaysian Pacific Industries’ target price

KUALA LUMPUR, Jan 30 – Affin Investment Bank cut its target price on semiconductor-to-electronics manufacturer Malaysian Pacific Industries Bhd (MPI) on weaker-than-expected earnings stemming from uncertain economic conditions in Europe.

MPI’s core net loss of RM3.3 million in the first half of its 2013 financial year was due to a dismal performance in the second quarter ended December, the research house said in a note today.

“In the near term, we believe that the sector will continue to be weighed down by the frail external economic conditions particularly in the euro region,” Affin said.

The research house cut its earnings estimates for the 2013 financial year by 47 per cent and for 2014 by 13 per cent.

However, Affin said although visible volatility in MPI’s quarterly earnings do not show consistent signs of a strong recovery, the firm’s strategic efforts in beefing up its smartphone and tablet markets will help enhance its earnings profile.

Affin kept its “add” call on the stock.

As of 0159 GMT, MPI shares were up 0.39 per cent against the Malaysian benchmark stock index which was almost flat. – Reuters



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