EG Industries 3Q22 Sees 33.4% Net Profit Growth To RM5.6m
Sungai Petani, Kedah, Malaysia, 25 May 2022 – Electronic Manufacturing Services (EMS) provider EG Industries Berhad (EG Industries; Bloomberg: EG:MK) registered 33.4% higher net profit of RM5.6 million in the third quarter ended 31 March 2022 (3Q22) from RM4.2 million previously, driven by higher sales of data storage products.
The positive bottom line followed the 32.1% revenue rise to RM306.0 million as compared to RM231.6 million in the corresponding quarter a year ago.
For the nine months ended 31 March 2022 (9M22), EG Industries recorded net profit of RM15.5 million, 12.8% higher than the RM13.7 million posted in the previous corresponding period, on 4.6% topline growth to RM861.5 million in 9M22 from RM823.7 million previously.
This vast improvement in 9M22 performance reflected the more favourable product sales mix and savings in operating expenses.
Dato’ Alex Kang, Group Chief Executive Officer and Executive Director of EG Industries Berhad says the company remains positive on our outlook for the current financial year ending 30 June 2022 (FY2022). “There are ongoing macroeconomics challenges such as the worldwide shortages of components, foreign currency fluctuations and China’s unexpectedly long lockdowns due to COVID-19 that could result in prolonged disruption on global supply chain.”
EG Industries improved margins
“Nonetheless, we will continue in efforts to improve product margins by enhancing our product mix through expanding our revenue contribution from our vertical integrated EMS. At the same time, we intend to widen the revenue base from new and/or existing customers to optimize our current production capacity from the ready enlarged machineries base.
“We hope to maintain our growth trajectory in FY2022 while leveraging on our current expertise in data storage, consumer electronics and 5G related products. We are also on a lookout for new opportunities back by our strong research and development capabilities by engaging with multinational companies to enlarge our customer base.”
Despite a challenging year for the EMS sector, EG Industries was included as one of the top 50 EMS providers in the world for Year 2021, ranked 48th.
The Group is among only four Malaysia-based companies in the list, thereby positioning EG Industries as a well-established EMS player with proven good track record with multinationals.