Malaysian Pacific Industries Bhd (MPI) has received continued BUY calls from RHB Research and CIMB Securities, with RHB raising its target price to RM55.80 from RM50.70 while CIMB maintained BUY with a lower target of RM50.00.
RHB said MPI’s FY26 performance was broadly in line with expectations, with stronger utilisation and operating leverage supporting earnings growth while its shift towards higher-margin AI servers, sensors and next-generation semiconductor applications strengthens the FY27-FY28 outlook.
MPI posted record FY26 revenue of RM2.65 billion, up 24.3% year-on-year, while core profit after tax and minority interest rose 22.4% to RM203 million, according to RHB. Growth was broad-based, with revenue increasing 23% in Asia, 10% in Europe and 52% in the US, supported by recovering automotive demand and continued strength in power modules used in AI servers and peripherals.
FY26 core profit grew 36.1% to RM200 million after adjustments, with 4QFY26 core profit rising 29.6% quarter-on-quarter to RM49 million. It expects demand for power semiconductors to remain a key growth driver as AI data centres expand, although higher start-up costs at MPI’s Suxiang plant in China led CIMB to cut its FY27-FY28 earnings forecasts.
RHB expects the industrial segment to lead growth, with AI servers already accounting for about 13% of the business. It also sees opportunities from silicon carbide and gallium nitride power packaging, alongside sensors, memory, humanoid robots and autonomous vehicles.
As of 10.39 am, the stock price gained 0.26% to RM45.56.
