MAIN Market-listed electronic manufacturing services (EMS) solutions provider with global presence, Cape EMS Bhd has returned to the black in its 2Q FY6/2026 ended Dec 31, 2025.
The group posted a net profit of RM7.04 mil which marked a significant recovery from the net loss of RM48.84 mil in the corresponding quarter of the previous year.
This performance represents a substantial turnaround in earnings on the back of a stable revenue of RM89.55 mil which was almost flat from a year ago (2Q FY6/2025: RM88.84 mil).
The swift return to profitability was primarily driven by a sharp improvement in gross margins.
Gross profit surged to RM24.2 mil from just RM700,000 a year ago, a reflection of the group’s successful pivot towards higher-value segments and on-going diversification efforts into strong growth and sustainable business.
“The successful turnaround validates our Cape 2.0 transformation strategy,” observed Cape EMS’ managing director Christina Tee Kim Chin.
“By actively improving our product mix, enforcing stricter cost discipline and diversifying into higher-value segments such as Battery Energy Storage Systems (BESS) and Wireless IoT, we are systematically building a more resilient earnings base.”
Added Tee: “We’re focusing on quality growth over pure volume. The momentum we’re seeing now – as reflected in the strong earnings recovery – is the direct result of moving beyond traditional manufacturing into intelligent, value-added solutions.”
The group’s positive trajectory is further evidenced by its sequential performance with earnings per share improving to 0.71 sen.
For the cumulative six-month period ended Dec 31, 2025, Cape EMS recorded revenue of RM181.0 mil and a net profit of RM11.68 mil.
Its financial recovery was supported by a combination of better operational execution and prudent financial management, including reduced impairment losses, lower write-downs of slow-moving inventories and a RM1.6 mil insurance claim on inventories.
All in all, the group’s recovery coincides with the acceleration of its “Cape 2.0” roadmap which anchors future growth on four pillars:
- EMS: Shifting towards high-precision engineering for aerospace and life sciences.
- BESS: Establishing a regional energy storage hub with Shanghai Sermatec.
- Wireless IoT (Internet of Things): Targeting Wi-Fi and private network solutions via Ligowave Wireless.
- Intelligent Manufacturing Network (IMN): Leveraging iConn Inc.to create a flexible, digitally coordinated “virtual manufacturer” model.
Cape EMS closed its 1H FY6/2025 financial period with a strengthened balance sheet. As of end-December 2025, its total equity rose to RM447.1 mil with net assets per share increasing to 45 sen, thus underscoring the value accretion generated during the period.
At the close of today’s (Feb 12) market trading, Cape EMS was up 0.5 sen to 30 sen with 6 million shares traded, thus valuing the company at RM298 mil. – Feb 12, 2026
