KUALA LUMPUR: PIE Industrial Bhd’s share price on Bursa Malaysia fell over 6% in early trade Monday after the company reported a 35% year-on-year decrease in second quarter net profit.
The counter, which is among the top losers, fell 11 sen, or 6.75% to RM1.52.
The company reported a 35% year-on-year fall in net profit in its second quarter ended June 30, 2018 (2QFY18) to RM6.98mil from RM10.70mil.
Its quarterly revenue declined 20% year-on-year to RM141.62mil from RM176.07mil, due to lower demand from existing customers for electronics manufacturing services (EMS), raw wire and cable products and trading activities, which was partly offset by higher revenue recorded for its wire harness products.
In the first six months to June 30, PIE Industrial posted a net profit of RM14.2mil, down 36% from RM22.2mil in the same period last year. Its revenue fell 15% year-on-year to RM286.8mil from RM337.9mil previously.
In a technical report, AmInvestment Bank said P.I.E. Industrial crossed the RM1.60 level in its latest session.
“With a healthy RSI level, a bullish bias may be present above this point with a target price of RM1.68, followed by RM1.84,” it said.
Meanwhile, it may continue trading sideways if it falls back below the RM1.60 mark in the near term.
“In this case, support is anticipated at RM1.48 whereby traders may exit on a breach to avoid the risk of a further correction,” it added.