KUALA LUMPUR (Aug 21): NationGate Holdings Bhd's (KL:NATGATE) second-quarter net profit plunged 79% as earnings normalised from a high base a year earlier, following significantly lower contributions from its data computing business.

The electronics manufacturing services provider nevertheless maintained its interim dividend at 0.25 sen per share, payable on Sept 22. The group currently sits on cash and bank balances of RM321.07 million against total borrowing of RM901.94 million.

Net profit for the three months ended June 30, 2026 (2QFY2026) fell to RM10.90 million from RM52.15 million a year earlier, mainly due to a reduction in sales from the data computing segment and less favourable foreign-exchange movements, according to the group's Bursa Malaysia filing on Friday.

Revenue declined 32% to RM1.77 billion from RM2.60 billion. The decline was concentrated in data computing, while NationGate recorded higher revenue from its other reporting segments including networking and telecommunications, industrial instruments, consumer electronics and automotive.

Still, data computing remained NationGate's largest business, generating about RM1.50 billion or 85% of total quarterly revenue.

NationGate said it remains focused on strengthening its manufacturing capabilities and expanding into higher-value technology segments by leveraging Malaysia's established electrical and electronics ecosystem.

"The group continues to advance its photonics-related initiatives, with the related facilities expected to be completed by the fourth quarter of 2026," it said. The group also expects continued adoption of artificial intelligence, cloud computing and digital infrastructure to sustain demand for server-related manufacturing and advanced technology solutions over the longer term.

Separately, NationGate announced the appointment of Chan Chee Kang as its new chief operating officer, succeeding Lee Kim San following the latter's retirement.

Chan, 49, joined the group in 2024 as general manager and will now oversee NationGate's operational functions and support the implementation of its business strategies and objectives. Lee, meanwhile, had served on NationGate's board since June 1, 2021 and was responsible for the group's overall operations and resource management.

Shares of NationGate closed two sen or 1.4% higher at RM1.41 on Friday, valuing the group at RM3.21 billion. The stock has gained nearly 55% year to date.