Highlights

Bimb Research Highlights

Author: kltrader   |   Latest post: Tue, 10 Sep 2019, 4:46 PM

 

Malaysian Pacific Industries - Challenging outlook ahead

Author:   |    Publish date:


  • 3QFY19 core earnings slumped 16% yoy and 51% qoq mainly due to weaker sales from the Asia and US segments.
  • 9MFY19 core earnings fell slightly by 0.6% despite weak performance in 3QFY19. This was largely on the back of higher sales from Asia segment in 1H.
  • Overall, 9MFY19 core earnings trailed ours and consensus’ FY19F estimates at 63% and 61%. We cut FY19/20F earnings by 17%/15% on weaker sales volume expected ahead.
  • We remain cautious over its business prospects as the US-China trade tension would negatively impact its earnings.

Disappointment in earnings

3QFY19 core earnings fell 16% yoy to RM18.6m in tandem with 10% drop in revenue amidst lower volume loadings from the Asia (c.59% of revenue) and US (c.14% of revenue) (Table 2).

Weaker qoq sales from major market segments

On qoq, core earnings slumped 51% mainly on weaker sales to Asia (- 19%), US (-22%) and Europe (-11%). We believe this was due to adverse effect of the US-China trade tension.

Supported by 1HFY19

9MFY19 core earnings fell slightly 0.6% to RM94.1m from RM99.9m despite huge underperformance in 3QFY19. This was largely on the back of higher sales to Asia in 1H. Overall, 9MFY19 core earnings trailed ours and consensus’ estimates at 63% and 61% respectively.

Dividend declared

A second interim DPS of 17sen (3QFY18: 19sen, YTD: 27sen) was declared. This implies a dividend payout of 233%.

Weaker earnings expected ahead

We cut our FY19/20F core earnings estimates by 17%/15% on weaker sales volume. We remain cautious over its business prospects as we expect the US-China trade tension would be a drag to its overall business.

Non-rated for recommendation and TP

Our coverage on MPI is non-rated after it was excluded from the SC’s list of Shariah-compliant stock in Nov 2018.

Source: BIMB Securities Research - 27 May 2019

Share this
Labels: MPI

Related Stocks

Chart Stock Name Last Change Volume 
MPI 9.08 -0.28 (2.99%) 7,900 

  Be the first to like this.
 


 

218  266  536  1305 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 MNC-PA 0.045+0.005 
 ARMADA 0.325+0.01 
 GPACKET-WB 0.2650.00 
 HSI-C7J 0.22-0.03 
 SAPNRG 0.28-0.01 
 KNM 0.405+0.01 
 HSI-C7F 0.40-0.055 
 VSOLAR 0.0950.00 
 MNC 0.115+0.005 
 HSI-H6S 0.19+0.035 

TOP ARTICLES

1. Dayang: Investors' Dilemma - Koon Yew Yin Koon Yew Yin's Blog
2. KNM: A relook into KNM from Profitability, Volume Spread Analysis and what’s Insiders Report are telling they are doing now ? TradeVSA - Case Study
3. OPCOM (0035) OPTIMAL OPTIC COMPANY : THE SUPER-STOCK OF THE DIGITAL ECONOMY, Calvin Tan Research THE INVESTMENT APPROACH OF CALVIN TAN
4. What is the thing happen with Boustead and how do we capture the oppurtunity Stevent Hee
5. [转贴] 马云最失败的投资?上百亿打造的无人超市,如今变成怎样? Good Articles to Share
6. KNM Break Up : Time for the Long Awaited Rally 128Huat Potential StockPick
7. PublicInvest Research Headlines - 19 Sept 2019 PublicInvest Research
8. [12Invest] 壹贰讲股 - 浅谈冷门油气股 Deleum Berhad(5132) [12Invest] - 壹贰讲股
Partners & Brokers