CIMB says 'accumulate' MPI shares

by **Cals** Wed 08 Jul 2015, 01:29

CIMB says 'accumulate' MPI shares

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By Samantha Ho / theedgemarkets.com | July 7, 2015 : 11:51 AM MYT
KUALA LUMPUR (July 7): CIMB Investment Bank Bhd advised investors to accumulate Malaysia Pacific Industries (MPI) ([You must be registered and logged in to see this image.] Financial Dashboard) shares to capitalise on the stock's recent decline.
In a report today, CIMB analyst Mohd Shanaz Noor Azam said semiconductor manufacturer MPI's (valuation: 2.0, fundamental: 1.8) share price had fallen 8% in the last five weeks, due to weakness in the domestic market and concern about inventory build-up in the sector.

“We see the recent pullback in MPI’s share price as a good buying opportunity for investors.
“Management highlighted that FY15 growth is largely driven by stronger revenue contribution from Carsem Suzhou, which is expected to increase 27% yoy,” Mohd Shanaz said.
CIMB's report followed a recent meeting with MPI managing director Peter Yates. According to Mohd Shanaz, CIMB has an ‘add’ call for MPI shares, with a target price of RM8.50.
Today, MPI shares fell eight sen or 1.2% to RM6.52 at 11:22am, with 33,900 shares traded.
The stock was the 10th-largest decliner across the bourse.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)