GEORGE TOWN: PIE Industrial Bhd is targeting to hit a billion ringgit revenue in 2021.
PIE's group managing director Alvin Mui (pic) told StarBiz that substantial revenue would be generated from a new portable electronic device project that the group had secured late last year.
“The group pumped RM50mil to extend its present manufacturing site by 50,000 sq ft.
“The extension, completed in early 2020, is ready to start production in August for the new product, ” Mui added.
According to Mui, the group will ship around one million units of a portable electronic device to the customer every year.
“After a year, we can expect the volume of shipment to increase.
“This customer has strong global distribution networks for portable electronic devices, box-build consumer and industrial electronic products, ” he said.
According to Mui, the group will explore expanding its presence in the consumer electronics segment.
“We have always produced printed-circuit board assembly products for the industrial and consumer electronic segments. The consumer sector contribution to our revenue is always smaller than the industrial.
“However, the demand for consumer electronics is growing. We are now negotiating for new consumer and industrial electronic products project with US customers, ” he said.
According to the Global Market Insights report, the consumer electronics market, valued at US$1 trillion in 2019, is expected to grow at a compounded annual growth rate of over 7% between 2020 and 2026.
“Continuous investments by industry players in R&D for development of new consumer electronic products including smartphones, smart wearables and home appliances will drive the market growth.
“Rapidly increasing penetration of Internet connectivity and services in several developed and developing economies across the globe is providing robust growth opportunities for the consumer electronics market, ” the report said.
Mui said the global supply chain is still causing production work to slow down.
“The electronic components coming from the Philippines, US and China still face problems, ” he added.
Mui said the group would be kept busy till the end of the third quarter by the backlog order it had accumulated because of the movement control order (MCO).
“The order backlog will keep us busy until the third quarter. The signs of a slowdown will be evident in the fourth quarter and will remain as long as the global pandemic lasts.”
Mui said technology products, especially those in the telecommunications sector, are selling well because the new normal required the deployment of more mobile telecommunication and IT products.
“For electronic manufacturing services (EMS) activities (73%), orders are expected to increase in the long run from existing customers and potential new customers through its fully built-up vertical integrated manufacturing facilities which will be further improved in operation for the coming years.