Friday 29 Mar 2024
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KUALA LUMPUR (Nov 15): PIE Industrial Bhd ’s net profit surged 78.78% to RM17.48 million in its third-quarter ended Sept 30, 2019 (3QFY19) from RM9.76 million in the previous corresponding period.

The increase was mainly due to lower administrative and distribution expenses, higher gain from foreign currency exchange transaction and higher income from other investments, according to its bourse filing.

Earnings per share (EPS) came in substantially higher at 4.37 sen against 2.11 sen a year ago.

However, quarterly revenue dropped 4.55% to RM166.48 million from RM174.42 million in the previous year’s same quarter. The decrease was mainly attributable to lower demand from existing customers for electronics manufacturing (EMS), raw wire & cable products, wire harness products and trading activities.

For the cumulative nine-month period, net profit grew 20.86% at RM28.13 million compared with RM23.28 million a year earlier, while revenue climbed 8.11% to RM498.72 million from RM461.31 million. EPS gained to 6.66 sen for the nine-month period, compared with 5.81 sen previously.

On prospects, it expects the EMS division, which accounts for 80% of its revenue, to benefit from the US-China trade war, and will see an increase in orders in 2019.  However, any drastic fluctuation of the ringgit against the US dollar will be the main factor that may affect its performance in the near future, it noted.

For its manufacturing of raw wire and cable, PIE also expects the segment to continue to grow and deliver consistent profit margins in the near future. It is expected to increase the selling price for the segment and secure more orders from customers to maintain the profit margin as well as to counter the effect of increased costs of raw materials.

It also said revenue from cable assembly & wire harness activities in Thailand is expected to grow in the coming years through its newly set-up small-scale facilities for plastic parts and PCB assembly. The management believes this division will have high potential to explore wider business scale in Thailand market from 2019 onwards.

Meanwhile, PIE said the management does not expect significant growth from the trading segment in the near future due to the lack of attractive electronics products from the parent companies.

The share price of PIE went up five sen or 3.5% at RM1.48, bringing it a market capitalisation of RM568.38 million. The counter saw some 1.26 million shares transacted.

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