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Cape EMS returns to profit in Q1 FY26, unveils tech-driven growth roadmap under CEB 2.0

JOHOR BAHRU: Cape EMS Bhd, a leading Malaysian engineering and manufacturing solutions provider, posted a revenue of RM91.5 million for the first quarter (Q1) ended September 30, 2025 (FY26), while profit before tax (PBT) and profit after tax stood at RM5.7 million and RM4.5 million, respectively, compared to a loss in the corresponding period last year.

Stronger gross profit margins, lower operating expenses, and reduced amortisation, finance costs, and foreign-exchange losses drove the improvement for the period.

Cape EMS also shared its strategic roadmap following its annual general meeting (AGM), reaffirming its commitment to long-term transformation under the CEB 2.0 framework.

The company also announced its return to profitability in Q1 of FY26, supported by improved product mix and cost efficiencies.

Speaking after the AGM, Cape EMS managing director and Group CEO Christina Tee Kim Chin said the group is now entering the next phase of growth, with a clear focus on technology-led manufacturing, clean-energy infrastructure and wireless connectivity solutions.

The group is strengthening its submicron precision engineering and component capabilities to support high-value industries such as industrial automation, aerospace, life sciences, and semiconductors.

The group’s intelligent manufacturing network (IMN), through its US-based subsidiary, iConn Inc, supports this by integrating design-for-manufacturing, virtual manufacturing, and AI-driven optimisation.

Through its collaboration with Shanghai Sermatec Energy Technology Co Ltd, Cape EMS is localising the assembly, testing, and lifecycle management of battery energy storage system (BESS) units for Asean markets.

The group sees strong regional demand from data centres, renewable-energy developers and smart-infrastructure operators.

Further, the group anticipates rising demand for private wireless networks across Asean.

Its subsidiary Ligowave Wireless Sdn Bhd will promote affordable WiFi-based connectivity solutions that cost about 10% of regular cellular infrastructure, helping to improve digital services in underserved areas.

iConn will continue expanding its regional network to enhance supply chain flexibility, mitigate tariff exposure and support the Group’s ambitions in distributed manufacturing.

Cape EMS remains cautiously optimistic about its near-term outlook.

Despite ongoing challenges in the global technology and manufacturing sectors, the board believes the group is now better positioned with a clearer operating structure, a healthier product mix, and a stronger focus on scalable, high-margin businesses.

Cape EMS managing director Christina Tee Kim Chin said CEB 2.0 marks a crucial step forward for the company.

“We are modernising our manufacturing model, building new energy technologies and expanding into wireless infrastructure to create sustainable long-term value for shareholders,” she said in a statement.

Barring unforeseen circumstances, the group expects its transformation initiatives to contribute toward a more stable and sustainable operational performance for FY26 and beyond.

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