Sungai Petani, Kedah, 27 February 2026 – EG Industries Berhad delivered a stronger first-half performance for FY2026, reporting revenue of RM723.9 million and core profit of RM49.1 million, driven by robust demand for 5G wireless access and photonics-related products.
The Malaysian electronics manufacturing and upstream component solutions provider attributed the growth to favourable product mix, improved production yields and steady progress in its Batu Kawan Smart Factory 4.0 ramp-up, alongside regional expansion into Thailand.
2QFY2026 Performance
For the second quarter ended 31 December 2025 (2QFY2026), the Group recorded:
- Revenue: RM379.5 million (+10.6% YoY)
- Core Profit: RM25.1 million (+25.0% YoY)
Growth was largely supported by higher sales of 5G wireless access equipment, photonics-related products, network switches and industrial electronic products.
Quarter-on-quarter, revenue rose 10.2% from RM344.4 million in 1QFY2026, while core profit increased 4.9% from RM23.9 million.
1HFY2026 Performance
For the six-month period ended 31 December 2025 (1HFY2026):
- Revenue: RM723.9 million (+6.2% YoY)
- Core Profit: RM49.1 million (+22.1% YoY)
Management highlighted continued operational efficiencies and higher-margin product mix as key contributors to earnings growth.
Batu Kawan Smart Factory 4.0 Ramp-Up
The Group continued scaling its Smart Factory 4.0 facility in Batu Kawan, supported by:
- Installation of additional high-speed Surface Mount Technology (SMT) lines
- Expansion of 1K and 10K cleanroom facilities
- Enhanced automation systems
The facility supports growing demand for optical modules, AI-related applications and data centre networking equipment, particularly from U.S.-based customers.
Thailand Expansion Gains Momentum
EG Industries also commenced development of a new manufacturing facility in Prachinburi, Thailand, following its land acquisition announcement in January 2026. Ground-breaking took place on 2 February 2026.
The Thailand plant, targeted for completion by end-2026, is expected to provide additional capacity for:
- Electricity storage components
- Electric vehicle-related products
- Telecommunications data centre applications
This regional expansion is aimed at strengthening supply chain resilience and serving growing demand from U.S. customers and Southeast Asia’s telecom and data centre sectors.
Outlook for FY2026
Chief Executive Officer Dato’ Alex Kang said demand for optical modules, AI applications and network switches remains resilient despite macroeconomic headwinds, including U.S. tariffs and currency volatility.
The Master Purchase Agreement signed in May 2025 and subsequent Letter of Intention in July 2025 continue to underpin production ramp-up at Batu Kawan, supporting the Group’s growth trajectory.
With expanded production capacity, strengthened customer relationships and disciplined execution, EG Industries expects to sustain its growth momentum for the remainder of FY2026.
