KUALA LUMPUR (Sept 25): MCE Holdings Bhd’s (KL:MCEHLDG) net profit for the fourth quarter ended July 31, 2024 (4QFY2024) rose 40.7% to RM4.14 million from RM2.94 million in the same quarter a year earlier.

This increase was mainly due to lower direct costs resulting from enhanced operational efficiencies, along with a rise in other income.

Despite this, revenue dipped 2.5% to RM36.9 million from RM37.9 million in 4QFY2023, attributed to slightly softer demand, the automotive parts manufacturer said in a bourse filing.

MCE has declared a second single-tier interim dividend of 1.5 sen per share, lower than the three sen per share declared a year earlier, payable on Oct 30. This brings the year-to-date dividend to three sen per share compared to 5.5 sen per share in the previous corresponding period.

For the full financial year ended July 31, 2024 (FY2024), MCE reported a 3.7% increase in net profit to RM16 million from RM15.4 million, while revenue was flat at RM155.7 million against RM154.9 million previously.

Commenting on the performance, MCE group managing director Goh Kar Chun said the award of several key long-term contracts demonstrates the company's ability to meet the high standards of leading automakers, reinforcing its market position and positive growth outlook for the future.

One of the "exciting developments" is the group's successful entry into the electric vehicle (EV) sector, marked by its first contract win in July to supply electronic and mechatronic components for Perusahaan Otomobil Kedua Sdn Bhd's (Perodua) first EV, Goh noted.

"As we continue to expand our role in this growing segment, our expertise uniquely positions us to deliver innovative solutions that meet the advanced requirements of the EV market, enabling us to capture significant opportunities in this dynamic sector," said Goh.

Looking ahead, Goh expressed confidence that MCE will benefit from the global shift of manufacturing to Asean, creating new export opportunities.

He noted that the company's capacity expansion is on track, with the MCE Auto Hub in Serendah over 50% completed and expected to be operational in the second half of next year.

"This new facility will allow us to more than double our production capacity, enabling us to capture a larger share of both the automotive and replacement equipment markets. It will also significantly enhance our ability to design and develop more sophisticated electronic components and systems, addressing the increasing demand for next-generation vehicles both locally and internationally,” Goh added.

At market close on Wednesday, shares in MCE gained six sen or 3.8% to RM1.64, valuing the company at RM202.6 million.

The stock hit a high of RM1.97 back in May after Brahmal Vasudevan of the private equity firm Creador became its newest substantial shareholder. Year-to-date, MCE shares have risen 13%.