KUALA LUMPUR (May 26): Electronics manufacturing services firm EG Industries Bhd's (KL:EG) net profit rose 75.7% to RM22.11 million for the third quarter from RM12.59 million a year earlier, boosted by higher profit margins.

The group's operating profit for the quarter ended March 31, 2026 (3QFY2026) grew 46.5%, which was partially offset by a 30% increase in depreciation and amortisation, as well as increased tax expenses.

Earnings per share increased to 2.36 sen from 1.35 sen in 3QFY2025, the group's bourse filing on Tuesday showed.

Quarterly revenue was little changed at RM301.56 million against RM300.62 million a year ago. The marginal increase was driven by higher sales contributions from the 5G optical modules and wireless broadband-related products, the group said.

No dividend was declared for the quarter.

For the nine-month period, EG Industries’ net profit increased 32.58% to RM81.92 million from RM61.79 million in the previous corresponding period. This growth was backed by a 4.4% increase in revenue to RM1.03 billion from RM982.3 million.

The group said it remains positive on its prospects for calendar year 2026, supported by sustained demand for its advanced 5G optical modules, wireless broadband and data centre-related products.

Recently, the group secured a RM949 million purchase order from an existing US based customer for the supply of 800G optical modules and wireless broadband-related products. The deal is expected to contribute positively to the group’s financial performance in FY2026 and FY2027.

At the same time, EG Industries is setting up a manufacturing facility on a 4.95-acre industrial land plot in Prachinburi, Thailand, with completion scheduled by year end. This facility will support production lines for energy devices, electric vehicle-related components, and local data centre applications.

‘’This milestone not only enhances our earnings visibility over the coming quarters, but also positions the group to participate in the next wave of high-speed optical connectivity and AI-driven data infrastructure growth,’’ said group chief executive officer Datuk Alex Kang in a statement on Tuesday.

"With expanding production capabilities, stronger customer collaborations and growing regional presence, we remain confident in our ability to deliver sustainable long-term growth and value creation for our shareholders,’’ he added.

EG Industries shares closed down one sen or 4.38% at RM1.53 on Tuesday, valuing the group at RM1.43 billion. 

All four analysts covering the stock had 'buy' calls prior to the release of the quarterly results, according to Bloomberg data. The average 12-month target price was RM2.06.