Friday 29 Mar 2024
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KUALA LUMPUR (March 27): MCE Holdings Bhd has secured contracts to supply various electronics and mechatronic components and parts for new Proton car models.

In a filing with the stock exchange, MCE said the supply of these parts by its wholly-owned unit, Multi-Code Electronics Industries (M) Bhd, is for 10 years, commencing in the first quarter of its next financial year ending July 31, 2019 (FY19).

The projects could generate total revenue of RM62 million for the group over the 10-year period, said MCE. There will be no material impact on its earnings for FY18.

Meanwhile, total investment cost is estimated at RM4.8 million.

In a separate bourse filing, MCE said it has slipped into the red for its second quarter ended Jan 31, 2018 as its top line shrank 31% on a fall in demand.

Net loss stood at RM195,000 or 0.44 sen per share, compared with a net profit of RM583,000 or earnings per share of 1.31 sen.

Quarterly revenue was down to RM16.97 million from RM24.6 million previously, due to lower demand for its original equipment manufacturer products.

For the cumulative first half of FY18, MCE was still profitable as it turned in a net profit of RM605,000. This, however, represents a 60% drop from RM1.5 million registered in the first half of FY17.

Revenue for the period declined 24.5% to RM34.62 million, from RM45.83 million a year ago.

On prospects, MCE highlighted that it is looking for strategic partners to expand its product range so as to broaden its existing customer base and capitalise on operational synergies.

MCE is principally involved in the manufacturing and trading of automotive parts, and has proposed to diversify its business into the provision of healthcare services after it acquired a piece of land in Setia City, Selangor.

According to its FY17 annual report, the group has proceeded with the preliminary planning and design of the medical centre, and is currently exploring the various viable options of this new business.

Shares in MCE were not traded today. Based on its last closing price of 75 sen apiece, MCE has a market capitalisation of RM33.30 million.

 

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