US stocks fell more than 1%, auto stocks and technology stocks were among the biggest losers, worst monthly performance this year; US oil fell nearly 5.5%; US bond yields fell sharply, and gold rose 1.5%.
Earnings recovered QoQ albeit still lower YoY. In general, 2H2019 is good for semiconductor industry, hope MPI's performance will also improve in tandem.
cash pile of RM713 mil use for accretive merger and acquisition, why won't share price go up?
Major expansion in Suzhou. The Suzhou plant, which has been running at c.93% capacity, is currently undergoing major expansion with new machines arriving in September 2019 and operations commencing in November 2019. Recall, the Suzhou division currently contributes c.30% of group revenue and is expected to climb to c.50% post-expansion
In analyst briefing, the management guided that 2H2019 performance will be better. Its Suzhou plant's utilisation is almost full and there is plan for expanding. The reason is US ban on Huawei has driven China to source the electronic components locally and MPI's Suzhou plant is benefiting.
By 2020, MPI's stock price should recover to >RM10 per share in tandem with the improving earnings.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
RainT
8,448 posts
Posted by RainT > 2019-05-23 19:00 | Report Abuse
see you in RM5.00