MPI’s FY17 results surpasses expectations

KUALA LUMPUR: Malaysian Pacific Industries Bhd's (MPI) financial year 2017 (FY17) results have surpassed expectations in light of the earnings surprise.

In a filing on Bursa Malaysia, MPI revealed that the group's profit before tax (PBT) for the financial year-to-date closed at RM251 million against RM196 million in the corresponding period for the preceding year.

According to AmInvestment Bank Bhd (AmInvestment Bank), MPI's FY17 core net profit to RM183 million was 10 per cent above the research firm's full-year forecast but in line with consensus.

“The earnings surprise was likely due to higher-than-expected sales volume,” it said.

Meanwhile, the group's FY17 CNP made up 101 per cent and 102 per cent of the research arm of Kenanga Investment Bank Bhd's and consensus' full-year estimates, respectively.

Absence of dividend per share (DPS) for the fourth quarter of 2017 (4Q17) was also expected by Kenanga Research.

“For FY17, the group declared a total net DPS of 27 sen which was also within our expectation,” the research arm said.

Kenanga Research highlighted that the overall industry continued to show improvement as the global semiconductor sales in June 2017 increased by 23.6 per cent, marking the eleventh consecutive y-o-y growth which is still showing uptrend momentum.

The research arm noted that management is looking at a more optimistic top-line growth in US dollar terms of 5.5 to 7.5 per cent in FY18, which will be driven by new products and strategic positioning in both high growth (communication) and defensive (automotive and industry) segments.