KUALA LUMPUR (March 25): MCE Holdings Bhd's (KL:MCEHLDG) second quarter net profit more than doubled year-on-year to reach a record high, despite lower revenue, thanks to a gain from asset disposal and interest income.

The automotive electronic and mechatronic parts manufacturer announced on Tuesday that its net profit for the second quarter ended Jan 31, 2025 (2QFY2025) jumped to RM9.57 million from RM4.52 million in 2QFY2024, as it recorded a RM7.52 million gain on the disposal of assets held for sale. Revenue was down 14.38% to RM34.29 million, compared with RM40.05 million previously — primarily due to lower customer demand and fewer working days due to the festive holidays.

With the higher quarterly profit, earnings per share rose to 7.26 sen from 3.66 sen, its bourse filing showed. It also declared a first interim dividend of six sen per share, payable on May 15, a significant increase from its 1.5 sen per share payout in 2QFY2024.

For the first half of FY2025 (1HFY2025), the group's net profit rose 53.44% to RM14.42 million from RM9.40 million in 1HFY2024, though revenue fell 6.91% to RM75.71 million from RM81.33 million.

Looking ahead, MCE said it is well-positioned to benefit from the global repositioning of manufacturing facilities to Asean, with more carmakers planning to establish assembly operations in Malaysia. At the same time, non-automotive players are increasingly sourcing from the region, creating additional opportunities.

"We are also diversifying beyond the automotive sector through a joint venture focused on non-automotive contract manufacturing, covering a range of products, including die-cut machines, precision tools, and packaging solutions for the cosmetics industry.

“As new markets open up and we prepare to commission our expanded capacity at the Serendah facility in the coming months, we are well-positioned to capitalise on emerging opportunities and drive sustainable growth. FYE 2025 is a foundation-building year where we lay the groundwork for the next phase of transformation for long-term success,” MCE group managing director Goh Kar Chun said in a separate statement.

MCE shares closed two sen or 1.27% higher at RM1.60, valuing the group at RM217.51 million.