PETALING JAYA: Electronic Manufacturing Services (EMS) and vertical integration provider EG Industries Bhd
is optimistic about sustaining its growth momentum for the financial year ending June 30, 2025 (FY25), buoyed by rising demand in hyperscale data centres and AI-driven digital ecosystems.
For the second quarter ended Dec 31, 2024 (2Q25), the group recorded a 41.4% year-on-year surge in revenue to RM343.1mil from RM242.6mil, driven by higher sales of 5G wireless access products, photonics-related products, and consumer electronics.
However, net profit rose modestly by 8.3% to RM13.4mil from RM12.4mil in the same period a year ago, with increased interest expenses and depreciation from ongoing expansion partially offsetting the higher revenue.
Group chief executive officer and executive director Datuk Alex Kang Pang Kiang said the group remains confident in its ability to sustain growth in FY25, driven by the increasing adoption of next-generation optical modules, AI modules, and network switches.
“As we ramp up operations, we are well-positioned to capture emerging opportunities in hyperscale data centres and AI-driven digital ecosystems,” he noted in a statement.
For the six months ended Dec 31, 2024 (1H25), EG Industries posted a 35.7% increase in revenue to RM681.7mil from RM502.4mil in the previous corresponding period.
Net profit more than doubled to RM49.2mil from RM23.2mil, bolstered by the highest quarterly profit on record during 1Q25.
Excluding foreign exchange volatility, the group’s core profit in 2Q25 rose by 3.8% to RM19.3mil from RM18.6mil in 1Q25, primarily due to improved operational yield.
Kang attributed the group’s strong performance to growing demand for high-margin 5G photonics-related products and AI modules.
"While forex volatility impacted headline profitability, our core operational profit continued to improve, reflecting our focus on operational yield enhancement and efficiency improvements," he said.
Looking ahead, Kang believes EG Industries is well-positioned to capitalise on increasing global investments in data centres and the growing need for reliable connectivity and advanced data infrastructure.
"We see sustained opportunities as AI adoption accelerates and demand for next-generation connectivity infrastructure grows. Our strategic focus remains on operational excellence and capturing value from emerging technology trends," he added.
