kimeng: 27 feb MPI (hold)

> H108 results within expectations despite stronger Ringgit
> H108 EPS of RM0.387 was within expectations, coming in at 54% of our
> FY08 forecast and 56% of consensus estimates. Pretax profit fell 6% Y/Y
> despite a 4% increase in revenue, mainly due to the strengthening of the
> Ringgit. Net profit fell a wider 10% Y/Y due to a higher tax charge of
> 9% versus 8.3% in H107 whilst EBITDA margin fell to 28.7% from 30.9%
> previously. Sequentially, Q208 net profit rose 88% Q/Q on a 10% increase
> in revenue due to higher sales, better margins and a lower effective tax
> rate. Management is cautious about H208 prospects, guiding for a 12-15%
> sequential decline in Q3 revenue.
>
> Attractive dividend yields; HOLD
> We are maintaining our HOLD recommendation, with a price target of
> RM9.70 based on 13x CY08 EPS of RM0.746. The share price is also
> supported by a projected gross dividend yield of 6.2% in FY08.
>