PETALING JAYA: Panasonic Manufacturing
Malaysia Bhd’s (PMM) margins are likely to come under pressure in the second quarter of the year on the back of high raw material and operating costs due to stringent standard operating procedures (SOPs).
MIDF Research said prices of raw material such as plastic resins, copper and aluminium rose by 4% to 13% compared to the preceding quarter.
“However, we are not overly concerned as we opine that some of these can be mitigated by PMM’s ongoing cost-optimisation activities. On top of that, its associate, which has returned to profitability, is expected to record sustainable profits in the future, ” the research house added.
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