KUALA LUMPUR: EG Industries Bhd
remains cautiously optimistic on its prospects for the remaining quarters of FY2026, supported by resilient demand for optical modules, AI-related applications and network switches despite macroeconomic uncertainties.
The electronics manufacturing and upstream component total solutions provider said the Master Purchase Agreement signed in May 2025 and subsequent Letter of Intention in July are supporting production ramp-up at its Batu Kawan Smart Factory 4.0 to meet rising demand for 5G photonics products, backup batteries and networking equipment.
It added that its new Prachinburi, Thailand facility, targeted for completion by end-2026, will expand capacity for electricity storage, EV-related products and telecommunications data centre applications.
In the second quarter ended Dec 31, 2025 (2Q26), EG Industries’ net profit more than doubled to RM35.6mil, or earnings per share of 3.80 sen, lifting its first-half profit to RM59.8mil, or 6.39 sen.
Quarterly revenue rose 10.6% to RM379.5mil, bringing first-half revenue 6.2% higher to RM723.9mil.
Chief executive officer Datuk Alex Kang said the group’s 2QFY2026 performance reflects sustained demand across its core segments, particularly in 5G wireless access, photonics-related products and network switches.
He added that the improvement in core profitability underscores the benefits of a stronger product mix and continued operational efficiencies across its facilities.
