MCE's Q4 net profit plunges 76pct on higher material costs, operating expenses
KUALA LUMPUR: MCE Holdings Bhd saw its net profit plunged 75.6 per cent year-on-year (YoY) to RM835,000 for the quarter ended July 31, 2026 (Q4 FY26), despite registering 11.95 per cent higher revenue of RM44.87 million.
MCE Holdings Bhd reported a staggering 75.6% drop in its net profit for the fourth quarter of fiscal year 2026 (Q4 FY26), falling to RM835,000 despite a 11.95% increase in revenue to RM44.87 million. The significant profit decline was attributed to higher material costs, unfavorable currency fluctuations, and increased operating expenses.
These costs were primarily driven by elevated staff wages, depreciation, and other expenses associated with the expansion of MCE Auto Hub in Serendah. Despite these challenges, MCE declared a second interim dividend of 5.0 sen per share, making the total dividend for the fiscal year 10.0 sen per share. This profit slump contributed to a 31.9% decrease in the company's year-end earnings, which fell from RM23.9 million in the previous fiscal year to RM16.3 million in FY26.
However, MCE remains optimistic about its prospects for the upcoming financial year, citing the growing strength of national car brands and upcoming projects. The company expects to benefit from the expansion of its automotive electronics portfolio and is also expanding internationally, with a first supply project in India through a 55% joint venture.
Additionally, MCE secured contracts worth RM15.69 million in Malaysia for Proton Holdings Bhd, with supplies expected to commence in FY28.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
