KUALA LUMPUR (Aug 28): Cash-rich Malaysian Pacific Industries Bhd (MPI) posted a lower net profit of RM30.05 million for the fourth financial quarter ended June 30 (4QFY19), down 23% from RM39.03 million in the previous corresponding quarter.

Quarterly revenue dropped 12% to RM345.9 million in the quarter under review from RM393.1 million a year ago. Earnings per share contracted to 15.82 sen from 20.55 sen previously.

The group, which is controlled by tycoon Tan Sri Quek Leng Chan, said the semiconductor market will remain challenging moving forward due to uncertainty in the global economy.

The semiconductor firm attributed the earnings contraction to the US-Sino trade tension coupled with unfavourable foreign exchange. The impact would have been more severe if not for the group's efforts in improving cost efficiency.

MPI said in its filing to Bursa Malaysia that across the board, Asia, the US and Europe all experienced revenue contraction, with the US having had the biggest fall of 26%, followed by Europe 17% and Asia 6%.

The group did not declare any dividend for the quarter.

Despite lower earnings, MPI's net cash pile ballooned to RM713.38 million in 4QFY19 from RM572.59 million.

MPI's annual profit and revenue are also lower for the full financial year ended June 30, 2019 (FY19). The group's annual net profit fell almost 10% to RM128.32 million or 67.53 sen per share, from RM142.46 million, or 74.99 sen per share in FY18. Annual revenue declined 3.5% to RM1.49 billion from RM1.54 billion a year ago.

MPI's share price resumed its downward trend in early July, falling from RM9.80 to a low of RM8.40 — the lowest closing since May 2018. The stock has shed nearly 14% year to date to close at RM8.57.