KUALA LUMPUR (Dec 22): Panasonic Manufacturing Malaysia Bhd fell as much as 56 sen or 1.8% to RM30.62 today after it confirmed 116 employees at both of its manufacturing facilities in Shah Alam had tested positive for Covid-19 in a recent screening.

At 10.49am, Panasonic had pared some losses at RM30.66, still down 52 sen or 1.67%, with 3,300 shares changing hands.

Panasonic said in a bourse filing yesterday it had completed full screening of about 2,137 workers and employees, and 116 of them were found to be affected.

Following the Petaling district health office's advice, Panasonic decided to close its facilities from yesterday until tomorrow to allow disinfection specialists to carry out their work.

Hong Leong Investment Bank (HLIB) Research opined that the group may need to increase the number of shifts/overtime, thus incurring higher production cost in order to fulfil the demand moving forward. 

“We cut our FY21 (forecast for the financial year ending March 31, 2021) marginally lower by 2% due to the above-mentioned reasons,” it noted in a report today. 

It reiterated its "hold" call with a lower target price (TP) of RM28.17 from RM28.40 based on 17 times price-earnings multiple for mid-FY22 earnings. 

“Despite the uncertainties, we reckon Panasonic can weather through this storm, supported by its balance sheet strength of a net cash position of RM474.1 million (or RM7.80 per share) as [at the] end of September 2020,” HLIB Research pointed out.