KUALA LUMPUR (Aug 29): Malaysian Pacific Industries Bhd’s (MPI) net profit rose 7.17% to RM80.49 million for its fourth quarter ended June 30, 2022 (4QFY22), from RM75.1 million in the same period last year, helped by double-digit contributions from all of its geographical segments.
Earnings per share went up to 40.47 sen from 37.85 sen, the semiconductor player’s Bursa Malaysia filing showed.
Quarterly revenue climbed 13.9% to a new record high of RM612.04 million from RM537.34 million, as the Asia segment grew 12%, the US segment grew 23%, and the Europe segment grew 15%.
On a quarter-on-quarter basis, MPI’s net profit slipped from RM81.36 million in 3QFY22 despite revenue rising from RM611.56 million.
MPI, which is part of Hong Leong Group, did not declare any dividend during 4QFY22.
For the full FY22, MPI’s net profit increased 20.98% to a record RM328.85 million, from FY21’s 271.82 million.
FY22 revenue also rose to a new high of RM2.42 billion, up 21.51% from FY21’s RM1.99 billion.
Looking ahead, MPI anticipates the operating environment to remain challenging due to supply chain disruptions, inventory adjustments, inflation and manpower limitations, in addition to the Covid-19 movement control imposed in Suzhou and Greater Shanghai areas, which will continue to have an adverse effect on MPI’s Suzhou factory.
As such, the group said it would focus its business strategies and operational efficiencies to ensure sustainability and strengthen its fundamentals in conduction business.
“Overall, the semiconductor industry is facing challenges from continued operational and supply chain disruptions due to war, Covid-19, inflation, looming risk of a potential recession, and geopolitical tensions.
“This is translating into specific issues for our business, such as extended delivery timelines for critical equipment, components, and materials necessary for sustaining production and expansion plans; increase in costs for transportation, material and equipment costs; as well as manpower crunch.
“Specific mitigation actions are in place to manage and minimise the impact from these predominantly external constraints,” MPI said in a statement.
The group added that it expects its resilient strategy to help navigate the challenging market conditions while capturing the growth opportunities in its focus application segments.
“MPI’s long term strategy remains intact as despite the external uncertainties, we will continue our strategic investments in facility expansion, automation, equipment purchase and upgrades, as well as manpower hiring and training.
“Our FY22 capital expenditure (capex) increased by 47% to RM730 million in comparison with FY21’s capex. We continue to be in a healthy cash position with net cash at RM772 million as of FY22,” the group said.
MPI’s share price closed RM1 or 2.94% lower at RM33 on Monday (Aug 29), giving the group a market capitalisation of RM6.93 billion.