It posts strong growth for nine months ended Sept 30 last year
GEORGE TOWN: Electronic manufacturing services-based group PIE Industrial Bhd expects to post a new record results for the fiscal year ended Dec 2015.
Group managing director Alvin Mui told StarBiz that the group had achieved a strong double-digit growth for the nine months ended Sept 30 last year compared with the previous year’s corresponding period.
For the nine months ended Sept 30, 2015, the group posted a pre-tax profit of RM44mil on the back of about RM400mil turnover against a pre-tax profit of RM32.4mil and a turnover of RM404mil previously.
Mui added that the group delivered additional industrial electronic products and medical equipment to new and existing customers with a market value of about RM50mil in 2015.
“We expect a good first quarter for 2016 because we already have in hand box-built medical equipment, industrial scanning devices and set-top boxes worth approximately RM100mil to deliver,” he said.
Moving forward, Mui said the competition would intensified due to the current economic climate, which would exert downward pressure on the prices of products.
“The group is well positioned to take up this challenge as we have achieved greater efficiency in the production process via automation and the use of new in-house productivity technologies.
“We are setting up a new metal stamping division at our headquarters in Seberang Jaya which will be operational in the second quarter of 2016.
“This means we will cut down outsourcing metal stamping jobs to third parties, saving us at least 5% in outsourcing cost,” he added.
On its medical equipment business, Mui said the group would this year expand the business division, which currently focused on producing portable oxygen concentrators.
“Last year, medical equipment is about 5% of the orders. We are targeting to increase it to 10% of the orders this year. The US is a major player on the global medical market worth US$85bil, according to industry analysts.
“The US is home to nearly 11,000 medical equipment and supplies companies, including major market leaders Baxter International, Johnson & Johnson, Medtronic and Boston Scientific,” he said.
On its business plans this year, the group would explore new application areas for its printed circuit board assembly (PCBA) products, which could be used in a variety of industries.
“For example, our PCBA components are widely used in different type of consumer, automotive, medical, telecommunications and industrial products.
“The most active markets today that are still using our products and services is the US, Europe and Japan,” he said.
According to a recent report from Market Research Store released last month, the oxygen concentrator markets are anticipated to reach US$1.9bil by 2019 from US$242.5mil in 2012.
“Growth is a result of new competitors in the market, demand for the smaller lighter technology by patients and the market need for greater mobility support for older people,” said the report.
According to a report from Euromonitor International released this month, the global medical device production value will record strong growth of almost 6% to reach US$315bil this year.
“However, winning market share in the traditional markets (Western Europe, and the US) will remain difficult due to growing regulatory scrutiny and pricing pressures.
“Operating in and exporting to emerging markets of Latin America and Eastern Europe will also be challenging due to decelerating growth of these regions’ healthcare industries.
“However, although the Asia-Pacific medical device market has proven to be hard to access, the region may provide medical device producers the opportunities to grow and gain new markets over 2016,” the report added.