SENAI: Cape EMS Bhd, a comprehensive electronics manufacturing services provider, reported a robust return to profitability for its Q2 ended December 31, 2025 (FY26).
The group recorded a profit after tax (PAT) of RM6.9 million, an improvement from the net loss of RM48.9 million in the same quarter last year.
This performance represents a substantial earnings turnaround, driven by stable revenue of RM89.6 million.
The swift return to the black was primarily driven by a sharp improvement in gross margins.
Gross profit surged to RM24.2 million, compared to just RM0.7 million a year ago, reflecting the group’s successful pivot towards higher-value segments and ongoing diversification efforts into strong growth and sustainable business.
Managing director Christina Tee Kim Chin said the successful turnaround in Q2 validates the Cape 2.0 transformation strategy.
“By actively improving our product mix, enforcing stricter cost discipline, and diversifying into higher-value segments such as battery energy storage systems (BESS) and Wireless IoT, we are systematically building a more resilient earnings base.
“We are focusing on quality growth over pure volume. The momentum we are seeing now—as reflected in the strong earnings recovery—is the direct result of moving beyond traditional manufacturing into intelligent, value-added solutions,” she said in a statement.
The group’s sequential performance further demonstrates a positive trajectory, with earnings per share improving to 0.71 sen.
For the six months of FY26, Cape EMS recorded revenue of RM181.0 million and a PAT of RM11.5 million. The financial recovery was supported by a combination of better operational execution and prudent financial management, including reduced impairment losses, lower write-downs of slow-moving inventories, and an RM1.6 million insurance claim on inventories.
The group’s recovery coincides with the acceleration of its Cape 2.0 roadmap, which anchors future growth on four pillars: shifting towards high-precision engineering for aerospace and life sciences, and establishing a regional energy storage hub with Shanghai Sermatec.
Further, CAPE EMS is targeting Wi-Fi and private network solutions through Ligowave Wireless and is leveraging iConn Inc. to create a flexible, digitally coordinated ‘virtual manufacturer’ model.
Cape EMS closed the period with a strengthened balance sheet.
As at December 31, 2025, total equity rose to RM447.1 million, with net assets per share increasing to RM0.45, underscoring the value accretion generated during the period.
The Sun Malaysia
