KUALA LUMPUR (Nov 29): EG Industries Bhd (KL:EG) on Friday posted an over threefold jump in its July-September quarter net profit from the same period a year ago, driven by higher sales and better margins — particularly from 5G wireless access and photonic-related products.
A net forex gain of RM2.87 million also boosted its bottom line for the first quarter ended Sept 30, 2024 (1QFY2025), the group's bourse filing showed.
Its net profit for 1QFY2025 jumped to RM35.77 million — its highest quarterly profit on record — versus RM10.78 million for 1QFY2024, as revenue rose 30.3% to RM338.56 million from RM259.85 million on increased sales from key customers. No dividend was declared.
Its latest quarterly net profit was also a significant 93.9% jump from the RM18.45 million it made in 4QFY2024, thanks to a more favourable product mix and net forex gains. Revenue dipped 2.4% from RM346.92 million, as the group focused on yield improvement for 5G wireless access and photonic-related products.
EG Industries chief executive officer and executive director Datuk Alex Kang said the strong start to its FY2025 with the record high quarterly profit "underscores the success of our strategic focus on aligning our product mix with high-margin offerings, alongside yield improvements and operational efficiencies".
"Looking ahead, we are confident that EG Industries will continue to achieve strong growth in FY2025, driven by robust demand for our advanced high-speed optical modules and AI modules," he said in a statement.
"The recent agreements we’ve secured, including a second Letter of Intent for the exclusive production of next-generation optical modules and a confirmed US$117 million (RM520.3 million) purchase order for 5G photonics-related products, highlight our strategic positioning in the expanding wireless networking technology market.
"With our Smart Factory 4.0 in Batu Kawan coming online in the first quarter of 2025, we anticipate further opportunities to secure additional purchase orders from both our existing key customers and new customers," he added.
EG Industries’ share price rose three sen to close at RM2.03 on Friday, giving the group a market capitalisation of RM915.99 million. The stock has jumped 55 sen or 37.2% since the start of the year.