KUALA LUMPUR: PIE Industrial Bhd, an electronics manufacturing services (EMS) company, registered better earnings in the third quarter despite a slow down in sales.
It expects the EMS division, which accounts for 80% of its revenue, to see improved performance in the coming quarters.
Net profit in the three-month ended Sept 30 jumped 79% to RM17.45mil compared with RM9.76mil made a year ago.
The increase in profits, the company said in a filing with Bursa Malaysia today, was driven by lower administrative and distribution expenses, higher gain from foreign currency transaction and improved income on its investments.
However, the improvement was offset by lower revenue and higher provisions for slow moving products.
Revenue fell 4.5% to RM166.5mil.
For EMS activities, PIE Industrial expects orders to increase in the long run from existing customers and potential new customers.
"This division is expected to receive more orders from overseas customers in 2019," it said.
It also added that the division will cancel certain low-margin, high volume products to focus on more profitable projects.
Meanwhile, revenue from its wire and cable manufacturing division, is expected to continue to grow with consistent profit margin.
"The company is expected to increase the selling prices and secure more customers to maintain profit margin from this segment," it said.