KUALA LUMPUR (Nov 15): Malaysian Pacific Industries Bhd’s (MPI) net profit in the first quarter ended September 30, 2023 (1QFY2024) declined by 68.65% to RM16.52 million from RM52.70 million in the same period last year, partly due to lower revenue and appreciation of the US dollar against the ringgit.

Earnings per share fell to 8.31 sen from 26.50 sen. MPI cautioned the current Middle East conflict could further dampen the recovery of the semiconductor industry in the near future.

In a Bursa Malaysia filing on Wednesday, the group said its quarterly revenue dropped by 9.01% to RM513.21 million compared to RM564.02 million on the back of softer global semiconductor demand.

The group declared an interim dividend of 10 sen per share, to be paid on Dec 19.

On a quarterly basis, the outsource semiconductor packaging company’s net profit came in higher from RM8.14 million registered in the immediate preceding quarter (4QFY2023) while revenue rose by 6.38% from RM482.43 million in 4QFY2023.

Looking ahead, the group expects a challenging operating environment due to present geopolitical tensions including the recent Middle East conflict.

“The group continues to focus on its business strategies and operational efficiencies to stay sustainable and strengthen its business fundamentals,” it said.

Shares in MPI finished 28 sen or 1.04% higher at RM27.18, giving it a market capitalisation of RM5.70 billion.