PIE Industrial sees profit jump in Q2

KUALA LUMPUR: PIE Industrial Bhd reported a profit increase of 74% to RM10.69mil from RM6.13mil a year ago in its second quarter ending June 30, 2017. 

This was on the back of a 30% or RM40.18mil year-on-year jump in revenue to RM176.06mil as well as lower operating expenses and reversal of slow-moving inventory.

In a filing with Bursa Malaysia today, the electronics manufacturing services (EMS) provider says the improved performance was mainly attributable to higher demand from existing customers for electronics manufacturing activities, raw wire & cable products and trading.

"However, this increase was partly limited by losses from foreign currency exchange transaction and higher provision for doubtful debts," PIE Industrial says in its report.

The company foresees steady revenue growth in 2017 with increasing orders from existing customers and ongoing new projects with potential customers. 

Main factors cited by PIE that will continue to affect the group's future revenue and earnings include the drastic fluctuation of the ringgit against the US dollar and labour and electronic components shortage.

"The group will continue to strengthen its vertical integration of manufacturing capability and maintain sufficient manufacturing capacity to cater to outsourcing orders from new and existing customers.

"Barring any unforeseen circumstances, the group anticipates to achieve a satisfactory performance for year 2017," it says.

The counter closed 1 sen or 0.44% lower to RM2.26 today.