KUALA LUMPUR (Feb 17): CGS-CIMB Research has downgraded Malaysian Pacific Industries Bhd (MPI) to “reduce” at RM33.74 with a lower target price (TP) of RM24 (from RM27) and said MPI’s 1HFY6/23 core net profit was below expectations at 34%/36% of house/Bloomberg consensus FY23F due to lower-than-expected Carsem Suzhou (CSZ) utilisation in 2QFY23.

In a note on Friday (Feb 17), the research house cut FY23-25F EPS by 20-48% in view of an extended delay in CSZ’s recovery, inflationary cost pressure and unfavourable forex movement.

“We downgrade the stock from 'hold' to 'reduce' with a lower TP of RM24.00,” it said.