For QE31/12/2017, MPI's net profit rose 14% q-o-q but dropped 25% y-o-y to RM41 million while revenue rose 2% q-o-q but dropped 2% y-o-y to RM395 million. PBT rose q-o-q due to higher overall revenue which rose due to 12%-increase in the revenue from the Europe segment which more than offset the 5%-decline in revenue from the America segment while revenue from the Asian segment was flattish.
Table: MPI's last 8 quarterly results
Graph: MPI's last 44 quarterly results
MPI (closed at RM11.24 yesterday) is now trading at a trailing PER of 13.4 times (based on last 4 quarters' EPS of 85 sen). At this PER, MPI is deemed fairly valued. Its dividend yield is also decent at 2.6%.
MPI is in a long-term uptrend line, SS. However the share price has moved way above the uptrend line and appears to have formed a rounding top. If MPI breaks below RM10.70, it may slide to the psychological support of RM10.00; the next horizontal line at RM9.30 or the long-term uptrend line at RM8.70.
Chart: MPI's weekly chart as at Jan 29, 2018
Albeit the weaker financial performance, MPI remains a good stock for long-term investment. As long as earnings uptrend remains intact - due to strong demand for semiconductor - MPI remains a HOLD. It can be a buying opportunity if share price were to drop to RM10.