Stronger growth expected. Management expects 4QFY06/10 revenue to register stronger qoq growth, given 3QFY06/10 qoq growth of +2.0% which bucks the trend of a seasonally weaker quarter. In addition, management expects 4QFY06/10 net profit to grow sequentially on the back of: 1) higher utilisation rate; 2) stronger contribution from MLP and high-density packages; and 3) margin expansion stemming from higher contribution of high-density packages and cost-cutting measures. We understand that overall utilisation rates increased to 95% from 85% in 2QFY06/10. Note that utilisation rates for Ipoh, Suzhou, and Dynacraft plants currently stand
at 95%, 100%, and 90% respectively (vs. 90%, 100%, and 85% in 3QFY06/10).
Malaysian Pacific Industries Berhad : Stronger Growth Ahead-27/05/2010
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