AmInvestment upgrades Malaysian Pacific Industries, raises fair value to RM12.06

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KUALA LUMPUR (April 16): AmInvestment Bank Research has upgrade its recommendation on Malaysian Pacific Industries Bhd (MPI) to “Buy” at RM10.34, with a higher fair value of RM12.06 (from RM11.64).

In a note today, the research house said the fair value is pegged to a rolled-forward FY21F PE of 15x, which is in line with local semiconductor players’ 1-year forward market cap weighted average PE.

AmInvestment said it has lowered its FY20F–FY2FF forecasts by 7–9% to account for the impact of the movement control order (MCO) extension on MPI’s local operations.

“Despite MPI’s near-term outlook being weighed down by the Covid-19 impact, we anticipate the group’s earnings to recover from FY21F onwards, driven by its positive longer-term prospects,” it said.