KUALA LUMPUR (May 18): Malaysian Pacific Industries Bhd (MPI) sank into the red, reporting a net loss of RM17.83 million, or 8.97 sen loss per share, for the third quarter ended March 31, 2023 (3QFY2023), compared with a net profit of RM81.36 million, or 40.98 sen per share, a year earlier.

This is MPI's first quarterly loss since 2QFY2013, when the company posted a RM1.79 million net loss at the time.

“As economic headwinds persist, weak-end electronics demand is spreading from consumers to commercial. Elevated inventories in the supply chain and higher energy cost have resulted in revenue and profit reduction for the quarter and year-to-date under review,” said the semiconductor company in a stock exchange filing.

“The board anticipates that the operating environment continues to be challenging for the coming quarters. Hence, the group will continue to focus on its business strategies and operational efficiencies,” it added.

Nonetheless, it declared a second interim single tier dividend of 25 sen per share - the same amount it announced a year ago — bringing its year-to-date dividend per share to 35 sen.

The dividend, with an ex-date of June 1, will be paid on June 21.

The company’s quarterly revenue declined 22.8% to RM471.86 million from RM611.56 million in 3QFY2022.

For the cumulative nine months ended March 31 (9MFY2023), MPI’s net profit tumbled 78.6% to RM53.2 million from RM248.37 million. Revenue was RM1.56 billion, 13.4% lower than the RM1.8 billion it registered the prior year.

MPI’s share price has declined 17.6% from a peak of RM33.74 on Feb 16. On Thursday (May 18), the stock gained 20 sen or 0.72% to RM27.80, giving it a market capitalisation of RM5.83 billion.