KUALA LUMPUR (Feb 25): Electronic manufacturing services firm EG Industries Bhd (KL:EG) posted an 8.3% increase in its net profit for the second quarter ended Dec 31, 2024 (2QFY2025), on the back of improved revenue supported by higher sales of 5G wireless access, photonics-related products and consumer electronics.

Net profit for the three-month period came in at RM13.43 million, compared with RM12.41 million reported in 2QFY2024. However, this was partially offset by a 31.4% rise in interest expenses to RM9.4 million on the back of ongoing expansion. Its depreciation and amortisation expenses also expanded 43.7% to RM13.89 million.

Earnings per share rose to 2.87 sen in 2QFY2025, from 2.67 sen in the same quarter a year ago.

Revenue for the quarter surged 41.4% to RM343.11 million from RM242.59 million in the same period last year. No dividend was declared for the quarter.

On a quarter-on-quarter basis, EG Industries’ net profit declined 62.5% from RM35.77 million, mainly due to foreign exchange (forex) losses arising from the weakening of the ringgit. Revenue, meanwhile, was up marginally from RM338.56 million in 1QFY2025.

“While forex volatility impacted headline profitability, our core operational profit continued to improve, reflecting our focus on operational yield enhancement and efficiency improvements,” EG Industries chief executive officer Datuk Alex Kang said in a statement.

For the first half ended Dec 31, 2024 (1HFY2025), its net profit more than doubled to RM49.21 million from RM23.19 million in the previous year’s corresponding period. Revenue climbed 35.7% to RM681.68 million from RM502.44 million.

“Looking ahead, we remain confident in our ability to sustain growth in FY2025, driven by the increasing adoption of next-generation optical modules, AI (artificial intelligence) modules, and network switches,” Kang noted.

Additionally, the group is in the process of setting up public bonded smart warehouses in its newly built facilities in Sungai Petani, Kedah, which are scheduled to commence operations in early 2025.

“These facilities will complement the manufacturing activities and serve as a new revenue stream for the group. These strategic initiatives are expected to help the group expand its market share and boost profitability in the long term,” it added.

At 3.50pm on Tuesday, EG Industries’ shares were traded down by 16 sen or 6.53% to RM2.29, giving the company a market capitalisation of RM1.07 billion.