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PR Newswire
05-06-2025, 07:43 AM
Malaysian Pacific Industries (MPI) today is a globally competitive, innovation-driven OSAT provider with a growing focus on power electronics and next-generation technologies.
Over the past six years, MPI has evolved from a traditional OSAT-focused manufacturer into a sustainability-integrated, digitally enabled partner aligned with global megatrends such as EVs, renewable energy, and advanced power semiconductors.
This transformation has been underpinned by strategic ESG leadership, strong global customer orientation, enhanced R&D capabilities, and a resilient, skilled workforce.
In line with this strategic shift, revenue and PAT grew at a CAGR of approximately 6% over the period. However, revenue growth did not translate into proportionately higher PAT due to declining gross profit margins and rising selling, general, and administrative (SGA) expenses.
At the same time, capital employed grew faster than PAT, resulting in a decline ROE. While this declining ROE trend is common across the sector, MPI continues to outperform peers on a relative basis.
That said, the market appears to have priced in concerns about MPI’s declining returns. So, while MPI stands out on a peer-relative basis, from an investment risk perspective, it falls into the Gem quadrant of the Fundamental Mapper — reflecting strong business fundamentals but a market valuation that is cautious about future profitability.
Over the past six years, MPI has evolved from a traditional OSAT-focused manufacturer into a sustainability-integrated, digitally enabled partner aligned with global megatrends such as EVs, renewable energy, and advanced power semiconductors.
This transformation has been underpinned by strategic ESG leadership, strong global customer orientation, enhanced R&D capabilities, and a resilient, skilled workforce.
In line with this strategic shift, revenue and PAT grew at a CAGR of approximately 6% over the period. However, revenue growth did not translate into proportionately higher PAT due to declining gross profit margins and rising selling, general, and administrative (SGA) expenses.
At the same time, capital employed grew faster than PAT, resulting in a decline ROE. While this declining ROE trend is common across the sector, MPI continues to outperform peers on a relative basis.
That said, the market appears to have priced in concerns about MPI’s declining returns. So, while MPI stands out on a peer-relative basis, from an investment risk perspective, it falls into the Gem quadrant of the Fundamental Mapper — reflecting strong business fundamentals but a market valuation that is cautious about future profitability.