KUALA LUMPUR (May 31): Electronic manufacturing services player EG Industries Bhd posted an 88.75% year-on-year increase in net profit to RM10.58 million for the third quarter ended March 31, 2023 (3QFY2023), from RM5.6 million a year ago, on the back of higher sales which was achieved despite forex losses and a higher interest rate in the market.

Earnings per share increased to 2.5 sen from 1.45 sen, the group’s filing with Bursa Malaysia showed.

Quarterly revenue rose 14.53% to RM350.47 million from RM305.97 million in 3QFY2022, mainly due to higher sales for consumer electronic products, 5G wireless access and photonics modular related products.

For the first nine months of FY2023, EG Industries’ cumulative net profit rose 85.99% year-on-year to RM28.75 million from RM15.46 million, as revenue grew 28.29% to RM1.11 billion from RM861.46 million.

EG Industries group chief executive officer and executive director Datuk Alex Kang said that the group remains optimistic for 2023 and 2024, as it moves its upstream beyond the electronics industry.

“We also anticipate demand for 5G wireless and photonic modular related products to remain robust,” he said.

Kang said the letter of intent signed last year by EG Industries with US-based Cambridge Industries Group has granted the group a pathway to produce advanced high-speed optical signal transmitter and receiver (optical modules) for 5G wireless network for the advanced telecommunication industry.

Meanwhile, the group’s new Batu Kawan plant is expected to commence by early 2024, which will boost its production capacity.

In a separate filing, EG Industries said its non-independent and non-executive chairman Keh Chuan Seng, 51, has resigned from the post to pursue personal interests.

The group has appointed Tan Jie En, 28, as an independent and non-executive director and Ong Lye Soon, 60, as the independent and non-executive chairman, while redesignating Ang Seng Wong, 61, to non-independent and non-executive director.

Shares in EG Industries closed one sen or 0.84% higher at RM1.20 on Wednesday (May 31), giving the group a market capitalisation of RM518.25 million.