What's Happening?
PIE Industrial Bhd has reported a 49% decrease in net profit for the third quarter of 2025, attributed to reduced demand for electronics manufacturing and raw wire and cable products. The company's net profit for the quarter was RM4.38 million, down from
RM8.6 million the previous year. Revenue also fell by 16% year-on-year to RM204.9 million. Despite the decline, PIE Industrial is exploring new business opportunities under the China+1 strategy and plans to offset lower orders impacted by US tariffs.
Why It's Important?
The decline in PIE Industrial's net profit underscores the challenges faced by electronics manufacturers amid fluctuating global demand and trade tensions. The company's efforts to explore new business opportunities and invest in automation and process optimization are crucial for maintaining competitiveness and efficiency. As trade tensions between the US and China persist, PIE Industrial's strategic initiatives could help mitigate the impact of tariffs and drive future growth, influencing the broader electronics manufacturing sector.
What's Next?
PIE Industrial is focusing on expanding its facilities and enhancing production capabilities to capitalize on new business opportunities. The company plans to complete its Plant 5 expansion and begin operations by early 2026, while Plant 6 is ready for mass production pending server qualification. These developments, along with investments in automation, are expected to improve productivity and competitiveness, potentially leading to increased revenue and market share.
