Strong supercomputer orders drive PIE's recovery
PETALING JAYA: PIE Industrial Bhd will likely see a recovery in its earnings in the third quarter of financial year 2025 (3Q25) on stronger order loadings for its supercomputers, says Maybank Investment Bank (Maybank IB).
A quick update with PIE revealed that the group began the year on a strong footing, supported by solid order loadings from a supercomputer customer in 1Q25, which contributed 37% of 1Q25's revenue.
'That said, we expect a slight moderation in 2Q25 orders due to softer market sentiment, which affected the demand for its products during the period.
'However, we expect volumes to rebound in 3Q25, returning towards 1Q25 levels as demand shows signs of recovery,' Maybank IB said in a report yesterday.
The research house also noted that PIE's prospective customers remained cautious, opting to delay purchase decisions until there is clarity on the implementation of the delayed US tariffs, which will resume on July 8.
On a positive note, PIE had completed a pilot run for a new US-based switches customer secured via Vietnam+1 efforts although the final decisions had also been deferred due to ongoing tariff uncertainties.
Maybank IB said: 'We leave our forecasts unchanged and remain constructive on PIE's outlook, underpinned by potential new customer wins and the upcoming commissioning of plant six.'
The research house also kept the stock's target price unchanged at RM4.70 per share.
Key risks to the group include weaker demand, operational delays (including customer onboarding and ramp-up), customer concentration, rising costs and adverse trade policy developments.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
33 minutes ago
- New Straits Times
Oil retreats as US tariff uncertainty looms, OPEC+ set to raise output
SINGAPORE: Oil prices fell on Thursday after gaining three per cent in the previous session as investors remained wary that higher US tariffs may be reinstated — potentially weakening fuel demand — and as major producers are expected to announce an output hike. Brent crude futures fell 45 cents, or 0.65 per cent, to US$68.66 a barrel by 0645 GMT. US West Texas Intermediate crude declined 44 cents, or 0.66 per cent, to US$67.01 a barrel. Both contracts rose to their highest in one week on Wednesday after Iran suspended cooperation with the UN nuclear watchdog, raising concerns that the lingering dispute over the Middle East producer's nuclear programme may again devolve into armed conflict. This, combined with the preliminary US-Vietnam trade deal, had boosted sentiment temporarily. Still, there is increasing uncertainty around US trade policy as the 90-day pause on the implementation of higher tariffs will end on July 9 without any new trade deals with several large trading partners such as the European Union and Japan. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies such as Russia — known as OPEC+ — are likely to agree to raise their output by 411,000 barrels per day (bpd) at their meeting this weekend. With uncertainty surrounding both events, and the upcoming July Fourth Independence Day holiday in the US, "market participants will probably not want to carry too much risk into the long US weekend," ING analysts said in a note on Thursday. Adding to the negative sentiment, a private-sector survey showed on Thursday that service activity in China — the world's biggest oil importer — expanded at the slowest pace in nine months in June as demand weakened and new export orders declined. A surprise build in US crude inventories also underscored demand concerns in the world's biggest crude consumer. The US Energy Information Administration said on Wednesday that domestic crude inventories rose by 3.80 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.80 million barrels. Gasoline demand on a weekly basis dropped to 8.6 million barrels per day, prompting concerns about consumption during the peak US summer driving season. The market will also be watching the release of the key US monthly employment report on Thursday to help shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year. Lower interest rates could spur economic activity, which would in turn boost oil demand. A private payrolls report on Wednesday showed a contraction for the first time in two years, though analysts cautioned there is no direct correlation between it and the government data.
New Straits Times
an hour ago
- New Straits Times
Malaysia's tech index outpaces peers after US-Vietnam trade deal
KUALA LUMPUR: Bursa Malaysia Technology Index outshines its peers on Thursday, with four component stocks ranking among the most active on the exchange. Driven by renewed buying interest following the United States-Vietnam trade agreement, the index rose 0.78 of-a-point or 1.5 per cent to 52.81 at midday from Wednesday's close of 52.03. Trading volume soared to 21.7 million units, reaching its highest level in nearly four weeks. The index, comprising 49 component stocks, has climbed 8.6 per cent since June 23, although it remains down 18.9 per cent year-to-date. Zetrix AI Bhd, formerly known as MyEG Services Bhd, led the most active board with over 50 million shares traded in the morning session. The stock gained one sen or one per cent to 97.5 sen from the previous close of 96.5 sen, lifting its market capitalisation to RM7.5 billion. The other three high-volume tech stocks were NexG Bhd, Dagang Nexchange Bhd (DNeX) and Inari Amertron Bhd, which saw trading volumes ranging from 20.7 million to 40.4 million units. NexG rose half a sen or 1.32 per cent to 38.5 sen, DNeX climbed half a sen or 1.71 per cent to 29.5 sen and Inari edged up four sen or two per cent to RM2.04. Malacca Securities Sdn Bhd said Wall Street's sentiment improved after the US-Vietnam trade agreement, which imposes a 20 per cent tariff on Vietnamese goods while allowing US products to be sold in Vietnam without duties. "With a positive lead from Wall Street, especially the buying interest in tech stocks following the trade deal, we expect the buying interest to spillover to the local exchange. "With the resumption of optimism surrounding the data centre developments, traders may want to monitor technology and telecommunication stocks like EG Industries Bhd, Mi Technovation Bhd and Telekom Malaysia Bhd," the firm said.
The Sun
an hour ago
- The Sun
BeauEver Secures NZ Prime Minister's Support in Historic China Summit to Accelerate Global Skincare Expansion
SHANGHAI, CHINA - Media OutReach Newswire - 2 July 2025 - At the 2025 China–New Zealand Trade Innovation Summit, New Zealand Prime Minister, the Right Hon. Christopher Luxon, witnessed the official signing of a strategic partnership between high-end anti-aging brand BeauEver and biotechnology leader The Beauty Lab Collective (TBLC). This milestone partnership deepens economic cooperation between New Zealand and China while promoting the global development of responsible, science-driven skincare innovation. 'This partnership reflects the strength of the NZ–China relationship and our commitment to global innovation,' said Prime Minister Luxon. 'BeauEver represents the best of New Zealand — science, sustainability, and international vision.' The agreement includes the launch of a New Zealand-based Active Ingredient Innovation Center, dedicated to researching marine and botanical compounds native to New Zealand's pristine ecosystems. Through TBLC's certified cruelty-free infrastructure and intelligent manufacturing, BeauEver aims to enhance its capacity to meet the evolving needs of consumers in China and across Southeast Asia. 'Our mission is to become a globally trusted name in cellular anti-aging — where nature meets science, and skincare becomes a meaningful, restorative ritual. This partnership helps us share that philosophy with more women around the world.' said Liam Corkery, General Manager of BeauEver New Zealand. BeauEver's innovation is grounded in more than 40 years of research into bioactive ingredients and cell-level rejuvenation. With dual R&D centers in Switzerland and New Zealand, the brand focuses on holistic skin renewal by supporting mitochondrial vitality, collagen stimulation, and skin-barrier reinforcement. At the heart of its product line is the BeauEver Cell-Reviving Firming and Rejuvenating Essence — a lightweight, high-efficacy formula designed to support skin's natural renewal process. Powered by bio-fermented actives, transdermal collagen delivery, and barrier-enhancing peptides, the essence helps improve the appearance of firmness, radiance, and resilience over time. It embodies BeauEver's brand philosophy: to awaken the body's natural energy and deliver visible results with integrity, science, and care. With a reported 300% year-on-year growth in 2024 in China market, BeauEver is rapidly expanding its global footprint in the premium skincare space — particularly among dermatology clinics, spa professionals, and wellness institutions across Asia-Pacific.
