Malaysian Pacific Industries Bhd (MPI) emerged as the most profitable counter during a trading session on Bursa Malaysia this morning, when the company's shares jumped by RM2.04 or 8.64% to RM25.64.
The jump was driven by the highest quarterly revenue of all time of RM55.3 million recorded by the company.
MPI declares a dividend of 10 sen per share to be paid on December 24.
At 11.40am, MPI shares rose to RM25.56, up RM1.96 or 8.31%. The company's stock counter also saw 425,500 shares traded.
According to Kenanga Research analyst Samuel Tan in his note today, MPI's main net profit for the first quarter ended September 30, 2021 (1QFY21) exceeded expectations at RM55.3 million which is 31% of its full year estimate.
"We anticipate that the company's revenue will continue to increase following the increasing demand for its power management chip packaging services for data centers and laptops due to the high use of cloud computing," Tan said.
Tan added that he expects orders for the front-end radio frequency packing module (RFFE) to increase following the adoption of 5G networks on smartphones, along with China's move to contribute components locally.
He also opined that the company's efforts in the silicon carbide (SiC) energy module offer bright prospects given its growing popularity among electric vehicle (EV) manufacturers.
Tan maintained the ‘outperform’ recommendation for the company’s shares and updated its target price to RM29 from RM18.80 previously.
