EG Industries Berhad's (EGIB) wholly-owned subsidiary, SMT Technologies Sdn Bhd (SMTT) had, on 5 June 2024, secured confirmed purchase orders (PO) valued at USD117 million (RM546.858 million) for 5G photonics related products from an existing key customer, stated as Customer C.
In a Bursa Malaysia filing today, EGIB said Customer C is a global industry leader with expertise in industry leading research and development and cutting-edge manufacturing for, among others, optical modules, wireless access broadband, carrier ethernet and edge computing.
"The PO is expected to be fulfilled in tranches over the next 12 months, EGIB said, adding, "The PO is anticipated to contribute positively to EGIB's earnings and net assets, on consolidated basis for the financial year ending 30 June 2025.
"On the other hand, the PO will not have any effect on the share capital and shareholding structure of EGIB Group."
EGIB Group may face several risk factors associated with PO including, but not limited to order deferment by Customer C and the timely availability of raw materials from suppliers.
While EGIB Group actively works to mitigate these risks, it's important to note that any changes in these factors could still have a material adverse effect on the business and operations of the EGIB Group, the company said.
At the time of writing, EGIB's stocks rose 8 sen to 2.30 with a transaction volume of 1,698, 100 shares transacted.