PIE Industrial expects AI server demand to support earnings recovery
The group expects Plant 5 utilisation to reach about 70% by year-end as production increases.
PIE Industrial Bhd (KL:PIE) expects rising AI server demand and increased output to help restore earnings in the second half of FY2026, ending Dec 31, 2026. Group managing director Kevin Che Kian Yeap said full-year performance was expected to improve from FY2025, supported by stronger volumes, revenue contributions and cost management.
The manufacturer became profitable again in the quarter ended June 30, 2026, after recording losses for two consecutive quarters. Its first-half FY2026 revenue was RM322.6 million, with a net loss totalling RM1.95 million. In FY2025, revenue reached RM879.2 million and net profit was RM22.6 million, while a major customer faced the effects of US tariffs.
Server system assembly is expected to begin contributing progressively from the fourth quarter of 2026. Che told The Edge that AI servers and telecommunications equipment would drive growth in the group's electronic manufacturing services operations in 2026 and 2027. Customers from China currently account for much of the opportunity in the server segment.
Higher volumes and the production ramp-up are expected to lift utilisation at Plant 5 to about 70% by year-end, according to the group. The plant has 100,000 sq ft of production floor space.
PIE Industrial is also putting more emphasis on switches and drones while building expertise in robotics, which remains a longer-term prospect. Che said the group plans to develop its manufacturing capabilities further, pursue higher-value electronics work and seek new customers over the coming year.
