For QE31/12/2016, MPI's net profit rose 38% q-o-q or 67% y-o-y to RM55 million while revenue rose 12% q-o-q or 6% y-o-y to RM401 million. PBT rose q-o-q due to higher revenue & strengthening of USD-MYR. Revenue rose due to increased sales to the Asia, USA and European segments by 11%, 20% and 7%.
Table: MPI's last 8 quarterly results
Graph: MPI's last 40 quarterly results
MPI (closed at RM7.95 yesterday) is now trading at a trailing PER of 8.8 times (based on last 4 quarters' EPS of 90.75 sen). At this PER, MPI is deemed fairly attractive. Its dividend yield is also decent at 2.9%.
MPI has been in a steady uptrend since it broke above its long downtrend line in early 2013. It tested its current uptrend line support at RM7.20-7.30 from November to December last year. At the start of this year, MPI rebounded from the uptrend line and may soon test the resistance from the horizontal line at RM8.10-8.20.
Chart 1: MPI's monthly chart as at Jan 25, 2017
Chart 2: MPI's weekly chart as at Jan 25, 2017
Based on improved financial performance, attractive valuation and mildly positive technical outlook, I revise MPI's rating from a HOLD to a BUY.