KUALA LUMPUR (July 17): CPE Technology Bhd’s (KL:CPETECH) wholly owned subsidiary Champion Precision Technology Sdn Bhd has acquired 118 units of machinery worth RM34.52 million as the group expands its manufacturing capacity.
The engineering precision parts maker said the machinery was acquired from Yamazen (Malaysia) Sdn Bhd, Numac Machinery Sdn Bhd and Japan-based DMG Mori Co Ltd, according to an exchange filing.
The purchase comprises eight Citizen Cincom auto lathe machines, 45 Okuma CNC turning machines, two DMG CNC turning machines, three Citizen Miyano CNC turning machines, and 60 Fanuc CNC milling machines.
Champion Precision Tech is principally involved in manufacturing precision machined parts and components using computer numerical control (CNC) turning and milling technology, as well as providing related machining services.
CPE Tech said the acquisition is intended to support current demand and future business expansion, while improving operational efficiency.
The purchase consideration will be funded through cash and loan financing, with the group also allocating proceeds from its initial public offering (IPO) to finance the machinery acquisition. The group said the additional machinery is expected to increase production capacity and support future earnings.
The semiconductor segment remains a key contributor to its revenue, accounting for about two-thirds of group revenue, supported by demand linked to artificial intelligence (AI), high-performance computing, advanced memory and semiconductor technologies.
CPE Tech said customer enquiries and orders have strengthened, with its order book approximately doubling over the past six months, although the group did not disclose a figure. It added that new customer projects are expected to contribute progressively as production capacity expands.
“The outlook remains subject to geopolitical, trade and macroeconomic uncertainties. The group will continue to focus on operational execution, cost management and the development of its manufacturing capabilities,” said CPE Tech in the filing.
CPE Tech’s shares slipped by eight sen or 7.7% to 96 sen on Friday’s market close. At its last price, the group's market capitalisation stood at RM644.5 million. Year to date, the counter has increased by 81.1%.