Kuala Lumpur, 19 September 2025 — CIMB Securities and RHB Research have both reaffirmed a Buy call on Malaysian Pacific Industries Berhad (MPI), following the company’s move to acquire Infineon Technologies Thailand Ltd (IFTH) for US$78 million (around RM328 million). Analysts believe the deal strengthens MPI’s semiconductor backend footprint and boosts its regional diversification.
RHB Research views the acquisition as a positive medium-term catalyst. They note that owing to the relatively modest price—valued at just 0.7 times IFTH’s FY2024 net assets of RM471 million—the transaction is undemanding in valuation. RHB highlights that while near-term impacts may be muted, the combination with MPI’s technology roadmap and expansion into high-growth markets such as power semiconductors points to stronger performance in FY2026.
CIMB Securities echoes this optimism, calling the acquisition strategically positive and earnings-accretive over the medium term. A key strength for MPI is IFTH’s existing production lines and its relationship with Infineon as a major customer, which ensures immediate demand. CIMB projects that IFTH will contribute 8-12% of MPI’s revenue in FY2027-FY2028, pushing the group’s core net profit compound annual growth rate (CAGR) to approximately 24% over FY2025-FY2028.
The deal is fully cash-funded, supported by MPI’s strong balance sheet; the company is carrying about RM988 million in net cash and will also use proceeds from the sale of its Dynacraft unit. Importantly, the acquisition is expected to be finalized by the second quarter of calendar year 2026 and does not require shareholder approval, since it falls below the 25% threshold for universal shareholder consent.
That said, analysts caution a few risks. These include the possibility of a slower than expected recovery in the semiconductor industry, potential customer losses, rapid technological shifts that could make devices or manufacturing methods obsolete, and currency fluctuations. But they believe MPI’s positioning in silicon carbide and gallium nitride power devices offers a strong hedge, given rising global demand in those areas.
As of mid-morning trading, shares in MPI rose about 1.9% to RM29.08 on the back of the announcement and positive trader sentiment.
