KUALA LUMPUR: OSK Research said MALAYSIAN PACIFIC INDUSTRIES [] Bhd's (MPI) annualised 1HFY11 earnings were within market consensus but 9.4% below its estimate, mainly due to its lower higher effective tax rate assumption.
The research house said on Wednesday, Jan 26 MPI's quarterly revenue continued to drop on-quarter for the second consecutive quarter while earnings growth declined from the triple digits on-year rate seen in FY10 to 45.4% in the previous quarter and finally -1.7% in 2QFY11.
'In terms of recommendation, in view of the 13% downside to our fair value, we maintain our Sell call,' it said. It has a Sell call at RM5.51 and target price of RM4.75.
The chip maker posted marginally lower earnings of RM25.29 million in the second quarter ended Dec 31, 2010 when compared with RM25.71 million a year ago. Its revenue increased 6% to RM367.59 million versus RM345.57 million. ''Its earnings per share were 13.05 sen compared with 13.19 sen a year ago.
MPI said the pretax profit of RM34.84 million against RM33.06 million a year ago, despite the higher revenue was mainly due to the strengthening ringgit against the US dollar.
The research house said on Wednesday, Jan 26 MPI's quarterly revenue continued to drop on-quarter for the second consecutive quarter while earnings growth declined from the triple digits on-year rate seen in FY10 to 45.4% in the previous quarter and finally -1.7% in 2QFY11.
'In terms of recommendation, in view of the 13% downside to our fair value, we maintain our Sell call,' it said. It has a Sell call at RM5.51 and target price of RM4.75.
The chip maker posted marginally lower earnings of RM25.29 million in the second quarter ended Dec 31, 2010 when compared with RM25.71 million a year ago. Its revenue increased 6% to RM367.59 million versus RM345.57 million. ''Its earnings per share were 13.05 sen compared with 13.19 sen a year ago.
MPI said the pretax profit of RM34.84 million against RM33.06 million a year ago, despite the higher revenue was mainly due to the strengthening ringgit against the US dollar.
No comments:
Post a Comment