KUALA LUMPUR: CIMB Securities has lifted its target price for Malaysian Pacific Industries Bhd (MPI) to RM35, citing earnings upside from the group’s acquisition of Infineon Technologies Thailand Ltd (IFTH).
MPI is acquiring IFTH for US$78 million (RM328 million), a valuation below book value, with the deal expected to provide earnings uplift and fresh growth catalysts.
“IFTH offers a ready offtake from Infineon, already one of MPI’s key customers, providing immediate volume support,” CIMB Securities said in a note.
Leveraging its expertise in assembly and test operations, the research house said MPI could improve IFTH’s efficiency and lift its margins closer to group levels.
The acquisition also strengthens the group’s partnership with Infineon, reinforcing its role as a core assembly and test provider.
CIMB Securities, which kept its “Buy” call on the company, said the move expands MPI’s manufacturing footprint beyond Malaysia and China, improving supply chain resilience.
It raised its earnings forecasts for FY26, FY27 and FY28 by between 4.7 and 7.5 per cent to reflect potential contributions from IFTH.
The broker estimates IFTH could generate 8–12 per cent of MPI’s revenue in FY27–FY28, with no contribution expected in FY26. Post-upgrade, it projects a three-year core net profit CAGR of 24 per cent.
CIMB Securities added that earnings growth will also be underpinned by stronger industrial demand linked to artificial intelligence (AI) and data centre infrastructure.
MPI plans to launch a new power module programme for a leading global AI chipmaker in the first half of 2026, providing another growth catalyst.
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