Friday 21 Jun 2024
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KUALA LUMPUR (March 26): MCE Holdings Bhd, through its wholly-owned unit Multi-Code Electronics Industries (M) Bhd, has secured contracts to supply electronic and mechatronics parts for a Proton car model.

The automotive electronic parts manufacturer told Bursa Malaysia that the supply of these parts is slated to commence in the second quarter of the financial year ending July 31, 2025 (2QFY2025), spanning a duration of 84 months.

The group noted that this project is anticipated to generate a total revenue of RM55.19 million for the MCE Group throughout the 84-month period, with an estimated total investment cost of RM650,000.

MCE said these contracts are expected to contribute positively to the group’s future earnings.

In a separate bourse filing, MCE said its net profit rose 6.37% to RM4.52 million for the second quarter ended Jan 31, 2024 (2QFY2024) from RM4.25 million in the previous year on higher demand for the group’s products, while revenue advanced 2.35% to RM40.04 million from RM39.13 million. 

The group also declared a 1.5 sen interim dividend for the quarter, to be paid on April 30. 

For the first half of FY2024, MCE’s net profit grew 21.26% to RM9.4 million from RM7.75 million, while revenue increased by 4.7% to RM81.33 million from RM77.68 million. 

Moving forward, in light of global geopolitical tensions and potential declines in consumer spending driven by rising living costs and shrinking disposable income, as well as the weakening ringgit against major foreign currencies, MCE said it is actively implementing strategies to safeguard its business including improving operational efficiency, pursuing new collaborations, and broadening its product range to encompass higher-value modular components.

At Tuesday’s closing bell, MCE’s share price was five sen or 2.86% lower at RM1.70, valuing it at RM210.05 million. 
 

Edited ByEsther Lee
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