GEORGE TOWN: RGT Bhd
expects its performance for the 2024 financial year ending June 30 (FY24) to improve over the last financial year, riding on the group’s rapidly expanding factory automation and precision engineering (FAPE) business.
“The orders and progress of the FAPE segment remain robust as the group continues to secure new projects from new and existing customers, especially from the semiconductor and automotive segments.
“The group has also received numerous requests for quotations from other potential new customers.
“We will focus on building a stronger market position in this segment through product development and technical capabilities,” group chief executive officer Datuk S.H. Lim told StarBiz.
For the six months of its FY24 ended Dec 31 2023, RGT posted a net profit of RM2.3mil, on revenue of RM58.30mil against a net profit of RM3.9mil and revenue of RM59.72mil in the same period of 2022.
According to Lim, the group invested a year ago to produce evaluation and test interface systems for the automotive industry this year.
“We are constantly in contact with potential customers from Europe and the United States involved in the automotive, hygiene care, factory automation and precision engineering business.
“We supply a US-based customer with an evaluation and test interface system to check light detection and range high-performance safety sensors.
“The prospects look good for the new automotive business as global sales of automobiles are expected to increase yearly at a moderate pace,” he said.
On RGT’s engineering polymer products (EPP) prospects, Mordor Intelligence research house reports that the global engineering plastics market, estimated at US$122.81bil in 2024, is expected to reach US$171.45bil by 2029, growing at a compounded annual growth rate of 6.9%.
Lim said that because of the group’s EPP competitive manufacturing cost and ample capacity space, its management has secured new customers from North America and orders for new EPP products from existing customers.
“Production for these new engineering polymer products is expected to commence in subsequent quarters, gradually. We have sufficient production capacity to cater for these increased sales.
“The group will continue to focus on controlling costs, exploring new markets and acquiring new customers to achieve better profits and business growth,” he said.
According to Lim, the group has spent RM100mil to acquire new subsidiaries and machinery and expand it production floor in the last three years.
He said the markets in the United States and Europe have been soft for the hygiene and air-care sector since 2022, but demand is picking up on a quarter-on-quarter basis.
The group’s hygiene and air-care sector generated 80% of its revenue, while the factory automation segment contributed 20% in 2023
“The hygiene care revenue contribution should adjust to 60%, while that of the factory automation segment to 40% by 2024 and eventually a balanced contribution in 2025.
“The hygiene and air-care revenue will continue to rise but the quantum of revenue contribution from the factory automation segment will be higher,” he said.
The group’s total build-up area is now approximately 350,000 sq ft after the expansion, compared to 170,000 sq ft previously.
