PIE 2024Q2 review

# Revenue decrease -16% yoy, -4% qoq
# PBT increase +44% yoy, +72% qoq
# Increase of PBT was mainly attributable to higher margin of products mix in the current quarter
# the supply shortage of some major IC components in Q1 2024 which caused many orders not being fulfilled has improved in Q2
# More supply is expected to increase in Q3 2024 and all the backlog orders are expected to be cleared by year end
# The Group is undergoing rationalisation to reduce orders from lower margin customers to reserve the capacity and resources for higher margin customers
# Plant 6 is expected to be ready in Q4 2024

my 2 cents:

2024Q2 revenue is not impressive, decrease some more, that is out of my expectation, but, profit margin increase a lot +44% yoy, +72% qoq. Company also mention coming Q3 supply is expected to increase and business seem good till year end (many backlog orders). Business is good for PIE as they mention the afford to pick company with higher margin.

PIE Plant 5 only operate in June 2024, this mean Plant 5 revenue only start contributed 1 month to latest 2024Q2 report.

In summary, I think PIE 2024Q2 report scored a passing mark with good future prospect, but can this report support it current price per rolling 4 quarters earning (PE) of RM5.52/RM0.1965 = 28.09 ?