KUALA LUMPUR (June 28): MCE Holdings Bhd (KL:MCEHLDG) saw its net profit plummet by 48.6% for the third quarter ended April 30, 2024 (3QFY2024) due to higher operating expenses and effective tax rates.

Net profit fell to RM2.42 million from RM4.7 million a year earlier, while revenue declined by 4.4% year-on-year to RM37.39 million from RM39.13 million. It attributed the lower revenue to two major festive holidays during the quarter, resulting in fewer working days.

The company also noted that the preceding year's corresponding quarter was also a higher base due to increased car bookings for the sales and service tax (SST) exemption before it ended in March 2023.

It did not declare any dividend for the quarter under review.

Nevertheless, MCE remains optimistic about its prospects.

"With manufacturing relocations to Asean, we are well positioned to capture emerging growth opportunities in the regional automotive supply chains," it said.

MCE is an original equipment manufacturer specialising in the full spectrum of design, manufacture and supply of automotive electronics and mechatronic parts.

For the nine-month period ended April 30, 2024 (9MFY2024), the group's net profit declined by 5.1% to RM11.82 million from RM12.45 million. Revenue increased by 1.5% to RM118.72 million from RM117 million a year earlier.

In a press statement on Friday, MCE group managing director Dr Goh Kar Chun highlighted that the construction of the group’s state-of-the-art plant in Serendah is underway, with commissioning targeted for 2025.

“This modern new facility will more than double our production capacity and enhance our competitiveness, enabling us to meet new demand from both existing customers and potential export markets.

“Moving forward, we will be increasing our focus to enhance export sales and establish our presence in the America and Pacific regions, as well as Europe,” he said.

Shares of MCE were up five sen or 2.9% to RM1.77, valuing the group at RM218.7 million. Year to date, the counter has gained 13.5%.