For QE31/3/2019, MPI's net profit dropped 57% q-o-q or 35% y-o-y to RM17 million while revenue dropped 17% q-o-q or 10% y-o-y to RM330 million. PBT dropped 58% q-o-q due to lower overall revenue which dropped across the board as follows: 11% in Europe segment, 19% in Asia segment and 22% in the America segment.
Table: MPI's last 8 quarterly results
Graph: MPI's last 44 quarterly results
As at 31/3/2019, MPI's financial position is deemed healthy with current ratio at 4.2 times and gearing ratio at only 0.2 time.
MPI (closed at RM8.80 last Friday) is now trading at a trailing PER of 12 times (based on last 4 quarters' EPS of 72 sen). At this PER, MPI is deemed fairly valued.
MPI is in a long-term uptrend line, SS at RM8.80. If this uptrend line is broken, MPI's next support will be at the horizontal line at RM8.30.
Chart: MPI's weekly chart as at May 24, 2019
Despite the weaker financial performance, I would rate MPI as a HOLD based on healthy financial position, fairly attractive valuation & still positive technical outlook. However, if the share price were to breach the uptrend line, my rating will be revised from HOLD to REDUCE.