KUALA LUMPUR (Nov 12): PIE Industrial Bhd's (KL:PIE) earnings jumped in the third quarter on improved factory utilisation and cost controls within its electronics manufacturing services (EMS) segment.
Net profit for the three months ended Sept 30, 2026 (3QFY2026) rose 156.5% to RM11.53 million from RM4.49 million a year earlier, according to its filing with Bursa Malaysia on Thursday.
Quarterly revenue increased 3.7% year-on-year to RM212.48 million from RM204.9 million.
No dividend was declared during the quarter.
PIE Industrial's EMS operations returned to profitability during the quarter with a pre-tax profit of RM5.17 million, compared with a pre-tax loss of RM1.66 million in 3QFY2025.
The company's raw wire and cable business recorded a pre-tax profit of RM7.28 million, a 6.36% increase from RM6.85 million previously.
Despite the improved earnings in 3QFY2026, PIE Industrial's net profit in the first nine months of FY2026 was down 64.73% to RM9.13 million from RM25.88 million a year earlier, as revenue fell 24.39% to RM535.11 million from RM707.69 million.
The weaker year-to-date performance was mainly attributable to lower demand from existing EMS customers, partially offset by higher revenue contributions from raw wire and cable and wire harness products, the company said.
AI server production to begin mass production in 4Q
PIE Industrial said it expects the positive momentum in 3QFY2026 continuing into the fourth quarter (4Q), following adjustments to operational strategies, gradual recovery in business volumes, and continued cost management, after external factors, including tariffs, contributed to a first-quarter loss of RM5.76 million.
The company said it would begin mass production of several artificial intelligence (AI) server-related products starting in 4Q. It expects growing global demand for AI servers, coupled with the broader China+1 manufacturing diversification strategy, to drive significant growth in 4Q revenue and business scale.
Looking ahead to 2027 and beyond, the company plans to increase investment and focus on switches and AI server-related businesses, while continuing to develop its existing box build manufacturing business in consumer electronics, industrial control, automotive electronics and cable assembly.
Over the next one to three years, the company also intends to evaluate opportunities in emerging industries, including AI key components and robotics, as part of efforts to diversify its revenue streams.
PIE Industrial’s share price closed five sen or 3.23% lower at RM1.50 on Thursday, valuing the company at RM576 million. Year-to-date, the stock has fallen some 44%.