CIMB - Buy MPI, TP RM 8.50. ▊ We met with MPI’s MD Peter Yates for an update on the company and its earnings prospects. Despite inventory build-up in the PC segment, management is upbeat on its outlook due to resilient demand in the smartphone and tablet segment (S&T). We left feeling confident about MPI’s strategy of growing its LGA & FBGA lines via the automotive segment. We expect its earnings to rise at a robust CY14-17 CAGR of 25%, driven by higher margin packages and improving operating efficiency. We keep our Add call on the stock and target price, based on 13.6x CY16 P/E, 1 s.d. above its historical mean. Potential catalysts are stronger earnings from the S&T and automotive segments, higher dividend payout and margin expansion. 6Jul15
KUALA LUMPUR (July 7): CIMB Investment Bank Bhd advised investors to accumulate Malaysia Pacific Industries (MPI) ( Financial Dashboard) shares to capitalise on the stock's recent decline.
In a report today, CIMB analyst Mohd Shanaz Noor Azam said semiconductor manufacturer MPI's (valuation: 2.0, fundamental: 1.8) share price had fallen 8% in the last five weeks, due to weakness in the domestic market and concern about inventory build-up in the sector.
“We see the recent pullback in MPI’s share price as a good buying opportunity for investors.
“Management highlighted that FY15 growth is largely driven by stronger revenue contribution from Carsem Suzhou, which is expected to increase 27% yoy,” Mohd Shanaz said.
CIMB's report followed a recent meeting with MPI managing director Peter Yates. According to Mohd Shanaz, CIMB has an ‘add’ call for MPI shares, with a target price of RM8.50.
I just realised this MPI has fallen from RM7.14 on 22.05.2015 to RM6.40 today (14.07.2015). Why is this technology stock so bearish? Is it safe to enter tomorrow (15.07.2015)?
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Posted by bsngpg > 2015-05-07 16:02 | Report Abuse
lching : have you added ?