M’sian Pacific Industries All-Time High Revenue & Profit
Upgrade TP to RM29.00 (+23% upside). MPI registered its all time high earnings with 1QFY21 CNP of RM55.3m (+50% YoY; +13% QoQ). Despite forex losses of RM6.7m, earnings still came above expectations at 31% each of our/street estimates. Revenue jumped 19%, spurred by higher demand for RFFE modules, power management chips, as well as automotive sensors. We expect demand to remain elevated owing to 5G adoption, WFH practice, and strong automotive recovery. Raise FY21E/22E earnings by 7%/8% to account for higher orders across all products. Maintain OUTPERFORM with a higher TP of RM29.00.
Above expectation. MPI registered an all-time high quarterly earnings as 1QFY21 CNP came in above expectations at RM55.3m (+50.3% YoY; +12.8% QoQ), representing 31% each of our and consensus full year estimates. The group’s net cash position further strengthened to RM943m (RM4.70/share) from RM826m in the previous quarter. The group declared a 10.0 sen dividend, in line with our expectation.
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