Period 2Q13/1H13
Actual vs. Expectations The group’s 1H13 net loss of RM1.6m came in below
ours as well as the street’s estimates. Nonetheless,
the 1H13 revenue of RM613.7m was in line, making up 49.3% and 47.9% of ours and
the consensus’ full year estimates respectively.
Note that we are
estimating MPI to record RM14.7m in net profit for the full year while the
consensus is eyeing for RM23.4m.
Dividends No
dividend was declared for the quarter under review.
Key Result Highlights
YoY, the 1H13 turnover grew by 3.2%
to RM613.7m with decent revenue growth in the USA segment (+23%) being offset
by weaker revenues in both the Asia and Europe segments (0% and -10%
respectively). Noteworthy however is that the recovery in the USA has made the
segment a larger contributor to the revenue at 31% in 1H13 as compared to 25%
in 1H12 while Asia and Europe both lost their shares of the revenue by 2ppts
and 4ppts respectively. Positively, the group also netted a positive overall
PBT of RM3.0m (vs. a LBT of RM26.3m in 1H12) buoyed by a higher revenue coupled
with better cost control measures.
QoQ, the 2Q13 revenue
was lower by 7.2%, no thanks to the weaker sales from all the segments which
saw the Asia, USA and Europe segments down by 6%, 9% and 7% respectively.
Meanwhile, the group’s 2Q13 PBT also tumbled by 89% QoQ to RM0.3m as a result
of lower revenue and thinner PBT margin (0.1% vs. 0.8%).
Outlook Although there was a mild improvement seen in
the November’s global chip sales data provided by the Semiconductor Industry
Association, we remain cautious in light of the lacklustre demand in PC sales and
prolonged global economic uncertainties.
We believe that the
industry sentiment and the company’s outlook will continue to be weighed down by
the current frail economic conditions, especially if they persist.
Change to Forecasts We are leaving our earnings estimates
unchanged for now pending further details from the company’s results briefing
today.
Rating Maintain MARKET PERFORM
Valuation There
is no change in our TP at RM2.78 for now, which is based on a targeted FY13 PBV
of 0.85x (at -1.0 SD from the mean). Nevertheless, we are likely to revise our
earnings forecasts as well as our TP downward post the results briefing.
Risks Adverse
currency fluctuations.
Industry’s recovery
may falter halfway.
Source: Kenanga
No comments:
Post a Comment