By Stella Goh

Business Model

PIE Industrial Group Berhad is incorporated in 1997 and the company has successfully converted into a public listed company on 30 May 1997.

PIE engaged in the business of manufacturing and assembly of wires and cables. They are added on fabrication of moulds and dies since 1996. The Printed Circuit Board (PCB) assembly uses the precision of Surface Mounting Technology (SMT), plastic injection mouldings and Class 10K and 100K clean room product assembly and testing of electronic products.

Besides, PIE is also coupled with its new up-to-date manufacturing facilities, and capable of offering a complete Integrated ‘One-Stop” Contract Electronic Manufacturing (CEM) services to major multinational companies for various electronics, telecommunications and computer peripheral products.

Most of the PIE’s customers are the subsidiaries of multinational companies which are involved in the production of computers, telecommunication and electronic products. Almost 1005 of the products will be exported directly or indirectly through the multinational companies which are main in the USA, Europe and Asia Pacific region.

Targeting RM1 billion Revenue in FY2021

According to the Managing Director Alvin Mui, PIE’s substantial revenue RM1 billion would be generated from a new portable electronic device project that the group secured last year. The company has pumped RM50 million in order to extend its present manufacturing site by 50,000 sqft and is completed in early FY2020. This manufacturing site is ready to start production in August for new products. Every year, PIE will ship around 1 million units of portable electronic devices to the customer and the company expects the volume shipment will increase after one year. In addition, the customers have a strong global distribution network for portable electronic devices, box-build consumer and industrial electronic products.

Based on the Global Market Insights report, the consumer electronic 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. However, the global supply chain is still causing the production work to slow down and the electronic components coming from the Philippines, US and China are still facing some problems. The company would be kept busy until the third quarter. The signs of slowdown will be evident in the fourth quarter and will remain as long as the global pandemic lasts.

Technology products, especially in the telecommunication sector, are selling well because of the new normal required for 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 operations for coming years.

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