Panasonic’s earnings to recover in coming quarters — Analysts
KUCHING: Panasonic Manufacturing Malaysia Bhd’s ( Panasonic) performance is expected to improve due to recovering demand in the group’s products.
The research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) has a positive outlook on Panasonic despite the group’s first quarter of 1QFY21 earnings coming in below expectation.
“Panasonic swung into a normalised net loss of RM2.2 million,” MIDF Research recapped.
No dividend was announced during the quarter, which was within MIDF Research’s expectation.
Due to the lower than expected earnings recorded for the quarter, the research arm trimmed its earnings estimates for FY21F and FY22F by 2.3 per cent and 1.5 per cent, respectively.
In spite of the group’s 1QFY21 earnings performance, MIDF Research projected that Panasonic’s performance will recover gradually.
“We expect Panasonic’s performance to recover gradually in the coming quarters due to recovering demand in its products.
“This comes as operations resume while orders are also picking up again from both the export market as well as locally to replenish the depleted stocks.
“That said, we believe that consumer sentiment may still be fickle and some segments may see downtrading to cheaper products.”
All in, MIDF Research maintained ‘ neutral’ on Panasonic.
Panasonic swung into a normalised net loss of RM2.2 million. MIDF Research