PETALING JAYA: PIE Industrial Bhd
is set to deliver strong growth in the future, underpinned by its prospects of securing potential new clients in the server, medical device and consumer goods sectors.
Kenanga Research in a report said this would be fuelled by steady orders from current clients, as well as Customers “A” and “N,” who are engaged in the production of household entertainment devices and ASIC-based equipment, respectively.
In preparation for this, PIE has started significant refurbishment and expansion projects at its 100,000-sq-ft plant 5 and 275,000-sq-ft plant 6.
In its first quarter of the financial year 2023 (1Q23), Kenanga Research said PIE met earnings expectations as it recorded a core net profit of RM13.6mil.
This, the research house said, represented 16% of Kenanga Research’s full-year forecast and the full-year consensus estimates.
However, the company’s 1Q23 core net profit declined by 27.7% due to electricity tariff hikes, coupled with higher administrative and distribution expenses.
PIE’s revenue grew 24.5% to RM332.5mil thanks to higher order volume across its customers, both new and existing ones.
On another note, the research house noted that the robust growth from its electronic manufacturing services segment has offset the decline in its wire and cable business.
Kenanga Research maintained an “outperform” call on PIE with a target price of RM4.05 per share for its comprehensive skillset, competitive advantages as well as diversified and evolving client base.
