KUALA LUMPUR (Feb 16): Malaysian Pacific Industries Bhd (MPI) warns that the challenging operating environment it is under will persist in coming quarters as it reports a 78.52% drop in net profit for the second quarter ended Dec 31, 2023 (2QFY2023) to RM18.33 million from RM85.32 million a year before — dragged by lower demand in the consumer electronics market.

As a result, earnings per share fell to 9.22 sen in 2QFY2023 from 43 sen in 2QFY2022, the outsourced semiconductor assembly and test (OSAT) firm’s bourse filing showed.

Revenue declined 13.42% to RM526.42 million from RM608 million previously. No dividend was declared during the quarter.  

The weaker quarterly performance resulted in a 57.47% contraction in its net profit for the first six months of FY2023 to RM71.03 million from RM167 million a year ago. Revenue was down 8.56% to RM1.09 billion from RM1.19 billion.

MPI’s board anticipates that the operating environment will continue to be challenging, especially for its China operations, due to the overall weak demand in China and current geopolitical tensions.

"However, the board expects demand in China to improve as it enters the endemic phase. Thus, the group will continue to focus on its business strategies and operational efficiencies to ensure sustainability and strengthen its fundamentals in conducting business," it said.

Shares of MPI rose 74 sen or 2.24% to RM33.74 on Thursday, giving the company a market capitalisation of RM7.08 billion. The counter has rebounded 42% from its low of RM23.76 seen in October last year.