MPI again surprises with a very good results for QE30/9/06

MPI has just announced its results for QE30/9/06. MPI’s net profit increased by 49.6% q-o-q or 330% y-o-y to RM61.0 mil. This was achieved on the back of a turnover of RM399 mil, which represents a marginally 2.8%-increase over the preceding quarter’s turnover but a jump of 34.3% over the turnover of the previous corresponding quarter. See the table below.







The biggest contribution to MPI's big net profit jump is its improving gross profit. The gross profit margin has increased from 12.2% for QE31/12/05 to 14.4% for QE31/3/06 to 16.3% for QE30/6/06 to finally to 22.4% for QE30/9/06.

Based on the latest quarterly EPS of 23.16 sen, MPI's full-year EPS is estimated to be about 92.64 sen. At a closing price of RM9.90 yesterday (Oct 31), MPI is trading at a PE of 10.7 times.

Technically speaking, MPI has broken above its downtrend line in September but the stock has been drifting sideway. Maybe, the continuous flow of good results would act as a catalyst for a re-rating of MPI.

















Chart: MPI's weekly chart as at Oct 31