Panasonic Manufacturing Malaysia Bhd (Panasonic Malaysia) became one of the most profitable counters in the Bursa Malaysia trading session this morning after MIDF Research increased its share prospects to 'buy' with a higher target price (TP) of RM35.45 compared to RM29.19 previously .
At 11am, Panasonic Malaysia shares jumped 38 sen or 1.27% to RM30.38, bringing its market capitalization to RM1.82 million.
In a note today, MIDF Research expects positive prospects and Panasonic Malaysia's revenue to recover in line with macroeconomic recovery and wider demand.
The 'buy' call was supported by Panasonic Malaysia's strong balance sheet, which included a cash surplus of RM620 million and an attractive dividend yield of 6%.
MIDF Research now expects Panasonic Malaysia to generate an annual net profit of RM126.6 million for the financial year ended March 31, 2022 (FY22) and RM130.9 million for FY23.
The value involved is higher than the estimated revenue of RM89.9 million for FY21.
Panasonic Malaysia recovered in the second quarter ended 30 September 2020 (2QFY21) with a total net profit of RM40.04 million from a net loss incurred of RM2.56 million during the previous quarter following the recovery in domestic sales and exports of the company.
According to Panasonic Malaysia's information to the exchange, the company's revenue also doubled to RM293.96 million from RM154.08 million in 1QFY21.
Panasonic Malaysia plans to focus on the sale of its main product categories such as fans, vacuum cleaners and hot springs this year.
The company intends to export more fans to Vietnam as the country's economy is not affected by the pandemic. The move will cover any losses incurred in the markets of other countries such as Thailand.
