• last year
PIVB thinks that Magni-Tech will see a stronger second half
Transcript
00:00 Public Invest thinks that MagniTech Industries is in for a better second half of the year
00:06 following its most recent results.
00:07 It sees current valuations as attractive and is keeping its outperformed call and RM2.30
00:12 target price.
00:14 So for a little recap, Magni saw its coin at profit decline by 13.7% year on year to
00:19 21.7 million, likely due to lower production efficiency dragged by the weaker sales.
00:25 PIVB mainly attribute the lower garment segment sales to weaker exports to China given the
00:30 continuous slowdown in China.
00:32 Magni declared a second interim dividend of 2.2 cent, bringing the year-to-date dividend
00:36 declared to 5 cent.
00:38 This translates to a dividend yield of 2.6%.
00:42 PIVB actually foresees Magni posting stronger earnings in the second half, driven by stocking
00:47 out activities from its major customer in anticipation of the year-end festive season.
00:52 In addition, the growing awareness in health and sports will continue to drive sportswear
00:56 growth while being supported by the Paris Olympics that is slated to be held next year.
01:02 In addition, PIVB understands that Magni will continue to focus on its ongoing cost optimization
01:07 initiatives, meaning better resource allocation and solar panels to support its margins.
01:12 According to Bloomberg, only Public Invest covers MagniTech and based on its target price,
01:17 this implies a possible upside of 21% based on the stock's current levels.
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