KUALA LUMPUR (May 14): EG Industries Bhd (KL:EG) secured a purchase order worth some RM949 million, its largest contract to-date, lifting the electronic manufacturing services firm's shares to the highest in over 25 years.
The order valued at US$241.6 million for 800G optical modules and wireless access products are expected to be fulfilled in tranches over the next 12 months, the company said in an exchange filing. Income from the delivery will be booked for the year ending June 30, 2026 (FY2026) and FY2027.
“Securing an order of this magnitude marks a significant milestone for the group, providing strong earnings visibility while further strengthening our position in the high-value technology segment and supporting our long-term growth trajectory,” said group chief executive officer Datuk Alex Kang.
EG Industries surged as much as 23% to RM1.59, a level not seen December 2000, as trading resumed from the midday break when the order was announced on Thursday.
The order is secured through its wholly owned subsidiary SMT Technologies Sdn Bhd from a key existing client only identified as ‘Customer C’ that contributed more than one-third of EG Industries’ total revenue in FY2025.
Looking ahead, EG Industries remains optimistic about its growth prospects, supported by a strong order pipeline, expanding production capabilities and ongoing initiatives across both Malaysia and Thailand, the company said in a separate statement.
In Thailand, EG Industries had raised equity interest in N.D. Rubber Public Company Ltd to 41.59%, allowing the appointment of Kang as the chairman of the firm also known as NDR that manufactures motorcycle tyres and tubes.
“This position allows us to play a more active role in shaping NDR’s direction and to move ahead more effectively with our expansion plans in Thailand, particularly across energy, local data centres and electric vehicle segments, Kang added.
All four analysts covering EG Industries have 'buy' calls on the stock. The average 12-month target price for the stock is RM1.85 a share with the target prices ranging from RM1.70 to RM2.02, according to Bloomberg.