KUALA LUMPUR (Dec 18): Auto parts supplier MCE Holdings Bhd (KL:MCEHLDG) reported a 13.62% decline in net profit for the first quarter, weighed down by weaker sales and rising staff and administrative costs linked to recruitment and preparatory activities for the upcoming commissioning of the MCE Auto Hub in Serendah.
Net profit for the three months ended Oct 31, 2025 (1QFY2026), fell to RM4.19 million from RM4.85 million in 1QFY2025, according to the group’s bourse filing.
Revenue slipped 4.59% to RM39.52 million from RM41.42 million. This was attributed to reduced orders following the relocation of a major customer’s plant and the end of production for a legacy vehicle model. No dividend was recommended for the quarter under review.
In a statement, group managing director Dr Goh Kar Chun said the group’s underlying operations remained stable, supported by disciplined execution and a focus on efficiency that helped maintain margin resilience.
“With new export initiatives coming on-stream and the commissioning of the MCE Auto Hub — which was purpose-built to support the production of advanced automotive electronics to stringent manufacturing standards — we are laying the groundwork for sustainable growth beyond FY2026,” Goh said.
The MCE Auto Hub is scheduled for commissioning in the second half of financial year 2026 (2HFY2026). The facility is expected to enable the group to deliver higher-value, technologically advanced products to both domestic and international markets.
Meanwhile, the group said it is strongly positioned to capitalise on emerging opportunities starting in FY2026, with a diversified portfolio, new revenue streams, and strengthened operational capabilities.
Within the automotive segment, the launch of new vehicle models by customers is expected to generate additional income to complement existing sales. “Exports of automotive parts to the United States have recently commenced, marking the group’s entry into a high-potential international aftermarket segment,” the group added.
MCE Holdings’ share price closed unchanged at RM1.56 on Thursday, giving the group a market capitalisation of RM235 million.
