PIE Industrial Bhd emerged as one of the top gainers in Bursa Malaysia's trading session this morning after reporting the all -time highest net core profit (CNP) of RM12.1 million for the first quarter ended March 31, 2021 (1QFY21) compared to RM2.5 million during the period. same year ago.
At 10.20am, shares of the Penang -based electronics manufacturing services provider rose 28 sen or 11.07% to RM2.81 from RM2.53 when the trading session closed last Friday, with 331,600 shares traded.
According to Kenanga Research, CNP PIE Industrial for the quarter was within expectations, representing 16% of the full -year budget and 20% of the full -year consensus estimate.
Moving forward, the firm expects the company to profit from higher commodity prices following the surge in copper prices which translated into an increase in average selling price (ASP) for the cable and wire manufacturing division, which accounts for 20% of PIE Industrial’s revenue.
In addition, Kenanga Research said the increase in Covid-19 cases and the implementation of work-from-home instructions also maintained high demand for the company's final product.
"PIE Industrial has also planned in advance to ensure its supply is adequate and not affected by the lack of chips or high load charges as faced by its competitors," he said in a research note today.
Kenanga Research maintained an ‘outperform’ recommendation on PIE Industrial with an unchanged target price of RM4.
