Panasonic M'sia may finally have stamped a bottom after plummeting torridly from $20 to $5.30

       One of the best managed companies on the local market, PanaMY < formerly Matsushita Electric(M)> has collapsed back to 1997/1998 & 1990/1991 levels due to unrelenting selling by the EPF that gets more desperate by the day: it ceased to be a substantial holder after jettisoning 306,600 shares to below the 5% level on 2nd July 2026, coming full circle from Apr 2009 when it first emerged as a substantial holder with 3.166 mil shares acquired. Barring a total destruction of demand for its household products & export market, buyers at this juncture stand to reap gains of at least 50-100% while collecting a declared 33c dividend going ex- in mid-September this year, especially since it's trading below both Grahamian net-net & cash net total liabilities, which would undoubtedly attract some strong hands to collect shares below $6!  Interestingly, China rival Xiaomi's stock has also tumbled 2/3 from highs above HK$60 last year!

      Compare its share price now to four decades ago when it achieved net profits of $8.56 mil in 1987, $10.2 mil in 1988, $26.7 mil in 1990, $33.3 mil in '91 & $41.9 mil in '92 [NTA $2.33 in '89, $2.95 in '91, $8.44 in '01] as compared to $33.9 mil in the latest FY [NTA $12.73]. Its May 1984 high was $4.42 [earned about $14.7 net profit around that time] while its May 1986 & Dec 1987 lows were $2.21 & $2.105 respectively. By 1992, when its listed scrip numbered 21.66 mil & then increased to 32.48 mil via a 1:2 bonus, EPS was $1.88 against a low of $31 pre-bonus, implying a 16.5 PE ratio at the low versus 9.5 now. A dividend of 25c on the lowest share price back in 1986 of $6.20 implied a 4% yield, appreciably less than what's been announced in 2026. 

 

 News articles from that era also indicate '"intense price competition from both domestic & imported products" while turnover of $214.5 mil over 15 months thirty-eight years ago compared to $690 mil over the 12 months of FY '25 suggests that, in spite of a 43% decline compared to peak turnover in FY '18, there is grossly excessive pessimism surrounding the company's performance. Despite the parlous declining profit & margins seen below, I would strongly contend that the share price has overcompensated for this, short of disastrous losses in coming quarters: