EG Industries Bhd group chief executive officer Datuk Alex Kang.
PETALING JAYA: EG Industries Bhd
remains optimistic about the outlook for the financial year 2024 (FY24) and FY25, as signs of gradual recovery in the global electrical and electronics industry are emerging.
The provider of electronic manufacturing services noted that it is well-positioned to capitalise on the trend and anticipates robust demand for its advanced high-speed optical signal transmitters and receivers and artificial intelligence (AI) modules.
For its fourth quarter ended June 30, 2024 (4Q24), the group’s net profit surged by 81% year-on-year (y-o-y) to RM18.4mil or earnings per share of 3.95 sen. Revenue also jumped by 43% y-o-y to RM346.9mil.
The earnings improvement was primarily driven by higher sales orders from key customers, along with improved yield from 5G wireless access and photonic-related products.
In a statement, chief executive officer Datuk Alex Kang said he is confident that EG Industries would continue to grow in FY25, driven by the robust demand the company is seeing for its advanced high-speed optical modules.
“The recent agreements we have secured, including a second letter of intent for the exclusive production of next-generation optical modules and a confirmed US$117mil purchase order for 5G photonics-related products, are strong indicators of the expanding opportunities in wireless networking technology.
“In line with our new Smart Factory 4.0 in Batu Kawan coming online in the first quarter of 2025, we anticipate more such purchase orders from both our existing key customers and new customers, further strengthening our market position and driving long-term growth,” he said.
However, the group said it also acknowledged various macroeconomic challenges, including a sluggish economy, intense competition from both local and overseas manufacturers, foreign currency fluctuations, inflationary pressures, and potential interest rate hikes.
The group declared an interim single tier dividend of one sen per ordinary share, paid on Aug 26, for its financial year ended June 30, 2024.
