Kenanga Research has raised its FY25 earnings forecast by 10%.
PETALING JAYA: PIE Industrial Bhd
can expect higher contributions from new customers that will collectively account for 8% to 12% of total group revenue in financial year 2024 (FY24).
It is also believed to have secured a new sizeable artificial intelligence server client that will take up its entire plant six of about 280,000 sq ft – its largest facility.
Kenanga Research said PIE would be the new customer’s sole contract manufacturer outside of China. That prompted the research house to raise its FY25 earnings forecast by 10%.
It also lifted its target price by 69% to RM6.75 from RM4 a share and reiterated its “outperform” call on the stock.
A fast-track project, the qualification processes will be completed followed by small production before the year is out, paving the way for mass production in 2025.
Ultimately, plant six will produce one-third of the new customer’s global volume.
Separately, plant five of 100,000 sq ft has been completed and is in the final stages of equipment installation. It will be dedicated to customer A and is set to commence operations by the end of May, doubling the floor space allocation for customer A, which currently occupies plant three.
