KUALA LUMPUR (Nov 23): Lower demand from the consumer electronics market in Asia has dragged down Malaysian Pacific Industries Bhd’s (MPI) net profit for its first financial quarter ended Sept 30, 2022 (1QFY2023) by 35.5% to RM52.7 million from RM81.68 million a year earlier.

This was partly offset by the appreciation of the US dollar against the ringgit.

As a result, its earnings per share declined to 26.5 sen for 1QFY2023 from 41.17 sen for 1QFY2022.

In a Bursa Malaysia filing on Wednesday (Nov 23), the semiconductor company said quarterly revenue slipped 3.5% to RM564.02 million from RM584.53 million in 1QFY2022. “Revenue from the Asia segment was lower by 15%, while the US and Europe segments were higher by 7% and 25% respectively,” it added.

Despite weaker quarterly performance, the group declared an interim dividend of 10 sen per share for the financial year ending June 30, 2023 (FY2023), payable on Dec 21.

For the rest of FY2023, MPI anticipates that the group’s operating environment will remain challenging due to the softening consumer electronic market and uncertainty in the macroeconomy.

"The group will focus on its business strategies and operational efficiencies to ensure sustainability and strengthen its fundamentals in conducting business," it added.

In a separate statement, MPI said despite the near-term uncertainties, its long-term strategy remains intact. "We continue our strategic facility expansions in China and Malaysia. Our balance sheet remains healthy, with a net cash position of RM840.4 million as of 1QFY2023."

MPI shares, which had tumbled 44.24% year-to-date, closed 2.99% higher at RM27.60 on Wednesday, bringing it a market capitalisation of RM5.79 billion. It is currently trading at a historical price-to-earnings ratio of 16.66 times, offering a dividend yield of 1.09%.