PIE Industrial Bhd swung into the red for the first half ended June 30, 2026 (1H26), posting a loss after tax of RM2.81 million compared to a RM20.71 million profit a year earlier, as weaker electronics manufacturing services (EMS) demand dragged revenue sharply lower.
First-half revenue also fell about 36% to RM322.63 million from RM502.76 million in the corresponding period, mainly due to lower orders from existing EMS customers. Higher sales of raw wire and cable as well as wire harness products partly cushioned the decline.
For the second quarter, revenue dropped 22% to RM180.13 million, down RM50.89 million year-on-year. The group reported an after-tax result of RM3.4 million for the quarter.
PIE attributed the weaker performance largely to its EMS operations, with one major cryptocurrency mining equipment customer hit by declining cryptocurrency prices and US tariff measures introduced since August 2025.
The tariff landscape has also reduced incentives for some prospective customers to shift manufacturing from Vietnam. However, continued China-US trade tensions are generating new China+1 opportunities, with PIE in discussions with potential customers looking to move production out of China.
The group said talks with major prospective server customers were progressing, with mass production potentially beginning in the fourth quarter of 2026 if the opportunities materialise. Its new plant could be used to support these programmes.
PIE is also stepping up automation and process optimisation to improve productivity, product quality and reduce labour dependence, while maintaining tight control over labour and factory overheads.
Its raw wire and cable business, which contributes about 33% of revenue, has been less affected by tariffs and is expected to benefit from newer, higher-speed machinery. The Thailand-based cable assembly and wire harness operation, accounting for around 7% of revenue, is also preparing for additional business following the completion of a new factory block.
The group said solar panel installations have already helped reduce electricity costs, with similar installations planned for its new plant in the coming months.
