Electronic Manufacturing Services (EMS) provider EG Industries Berhad ended the financial year ended 30 June 2023 (FY2023) with a spectacular tripling of net profit attributable to shareholders to RM38.44 million compared to RM10.82 million in the previous year, on favourable product mix of consumer electronics, 5G wireless access and photonics modular related products.
The EMS provider’s bottomline boost was on the back of a 21.0% rise in FY2023 revenue to RM1.35 billion in FY2023 versus RM1.11 billion a year ago.
For the fourth quarter ended 30 June 2023 (4Q23), the favourable product mix similarly catapulted net profit to RM9.69 million from a net loss of RM4.64 million previously, mitigating the 4.0% revenue decline to RM242.92 million compared to RM252.98 million in the previous corresponding quarter.
Speaking on future prospects, EG Industries Group Chief Executive Officer Dato’ Alex Kang revealed that the group was making good headway in the construction of its latest factory in Batu Kawan, Penang, en route to enlarging its capacity to produce more advanced 5G photonics products.
“We are proud that our strategies and the strong cooperation from our entire team and customers have propelled EG Industries to reach record-high performance in FY2023. Revenue derived from our newest segment of 5G wireless and photonics related products made up approximately a third of FY2023 revenue,” said Kang.
“To further expand this 5G segment, we are collaborating with another customer: a worldwide top 3 Ethernet switch company through our 30% associate company Genitronic (Malaysia) Sdn Bhd to produce 5G photonic modular components using co-packaged optics technology by first half of 2024. This attests to the increasing trust from our customers over the years, which is set to escalate even more when the Batu Kawan plant is completed,” he added.
“We are on track to commission our latest manufacturing plant in Batu Kawan in 2024, having already completed piling works and progressing to build the superstructure of the facility. The upcoming Smart 4.0 Lights-Out Factory will enable us to continue charting solid progress in our 5G journey, and capturing the wave of technology adoption,” said Kang.
EG Industries’ upcoming new plant in Batu Kawan, Penang complements the Group’s existing facilities in Sg Petani, Kedah. Upon commissioning in 2024, it is expected to increase EG Industries’ total built-up area of production, warehousing and office space by 45% from 55,000 sq m to 80,000 sq m across Sg Petani, Kedah and Batu Kawan, Penang.
The upcoming Smart Factory 4.0 had attracted the attention of a few notable local and foreign customers. Among them are US-based Cambridge Industries Group (CIG), where EG Industries had signed a Letter of Intent to produce Advanced High Speed Optical Signal Transmitter and Receiver for 5G wireless network (Optical Modules) using the photonics and semiconductor technologies for their global customers. This would be CIG’s first-ever pioneer technology transfer to South East Asia.
