MCE to supply parts to Proton

PETALING JAYA: MCE Holdings Bhd, which reported a net loss of RM195,000 in the second quarter ended Jan 31, 2018, will start supplying parts for Proton new car models for a period of 10 years, from the second half of this year.

In a filing with Bursa Malaysia today, MCE said its wholly owned subsidiary Multi-Code Electronics Industries (M) Bhd secured the contracts to supply various electronics and mechatronic components and parts to Proton.

The projects are expected to generate total revenue of about RM62 million for the group over the duration of the contracts which starts in the first quarter of the financial year ending July 31, 2019, while the estimated total investment cost is RM4.8 million.

For the second quarter ended Jan 31, 2018, the group suffered a net loss of RM195,000 compared with a net profit of RM583,000 a year ago mainly due to lower revenue.

The company said in a separate filing on its results in Bursa Malaysia that it is on the lookout for strategic partners to expand its product range to broaden its existing customer base and capitalise on operational synergies.

Moving forward, the group expects positive impact from the total industry volume which is expected to grow 2.3% to 590,000 units this year, as projected by the Malaysia Automotive Association. It also expects positive contribution from new and existing contracts secured to date.

For the six months ended Jan 31, 2018, net profit fell 59.64% to RM605,000 from RM1.50 million a year ago while revenue fell 24.47% to RM34.62 million from RM45.83 million a year ago.