PETALING JAYA: MCE Holdings Bhd’s net profit plunged 75.6% to RM835,000 in the fourth quarter ended July 31, 2026 (Q4’26), from RM3.42 million a year earlier, despite revenue rising 11.9% to RM44.87 million from RM40.08 million.
According to a filing with Bursa Malaysia, the automotive electronics and mechatronics supplier attributed the lower quarterly profit to higher material costs, adverse foreign exchange fluctuations and increased operating costs, including higher staff costs, as operations at its MCE Auto Hub in Serendah scaled up.
For FY26, net profit fell 31.8% to RM16.29 million from RM23.91 million a year earlier, while revenue rose 21.5% to RM185.47 million from RM152.60 million.
The group said the full-year revenue growth was driven by continued sales of existing vehicle models, the progressive ramp-up in production volumes of new models launched during the year, as well as design and development fees generated for upcoming vehicle models.
For Q4’26, higher revenue was supported by continued sales of existing vehicle models and the progressive ramp-up in production volumes of new models launched in phases since Q2’26.
Revenue growth was also supported by higher sales of value-added automotive products, including infotainment systems and digital meter clusters for a national electric vehicle.
MCE said FY25 net profit included a one-off gain from the disposal of land. Excluding the gain, FY25 net profit was RM17.59 million.
The group said the Malaysian automotive industry continued to demonstrate resilience, with the Malaysian Automotive Association revising its 2026 total industry volume forecast upwards to 800,000 units from 790,000 units following positive sales performance in the first half of 2026.
National marques accounted for approximately 67% of total industry volume in H1’26, compared with 63% a year earlier.
MCE expects its performance in FY27 to be supported by the progressive ramp-up of recently launched vehicle models and anticipated new projects, alongside its growing portfolio of higher-value automotive electronics, including infotainment systems, digital meter clusters and advanced driver assistance systems.
The group is also expected to begin supplying automotive components to the US market towards the end of Q2 or early Q3 FY2027, with sales contribution expected to increase progressively thereafter.
MCE has secured new contracts worth approximately RM15.69 million to supply electronic and mechatronic automotive components to PROTON through its wholly owned subsidiary Multi-Code Electronics Industries (M) Bhd and 60%-owned MCE Hengtuo Sdn Bhd.
The contracts are expected to commence in FY2028 and have a supply period of 84 months.
Separately, the group secured its first project in India through its 55%-owned subsidiary MCE Abhishek K Auto Components Pvt Ltd. The project involves the design and development of mechatronic components for commercial vehicles, with fees of approximately RM1 million.
MCE also continued to expand its non-automotive business through its 51%-owned subsidiary Eagle MCE Technologies (Malaysia) Sdn Bhd, which acquired a 50% stake in plastic injection and tooling supplier FP Project Enterprise Sdn Bhd.
The group said the acquisition strengthens its manufacturing capabilities and supply chain integration.
The board declared a second interim single-tier dividend of five sen per share, bringing total dividends for FY26 to 10 sen per share. The second interim dividend will be paid on Nov 13, 2026, with entitlement determined based on the record of depositors as at Oct 30, 2026.
MCE said the operating environment would remain challenging amid foreign exchange volatility, fluctuations in material and component costs, supply chain uncertainties and rising operating costs.
It said that it will continue to focus on cost management, operational efficiency and execution of new and existing projects, while progressively scaling up production and improving capacity utilisation at the MCE Auto Hub.
