Ge-Shen Corporation Berhad (“Ge-Shen” or the “Group”), an established service provider of precision engineering and manufacturing solutions, specialising in high-quality plastic, printed circuit board assembly (“PCBA”), liquid silicone rubber, medical devices and complete assembly for diverse industries, today announced its financial results for the second quarter ended 30 June 2026 (“Q2FY2026”), recording a strong sequential recovery with revenue increasing 19.2% quarter-on-quarter (“QoQ”) to RM107.41 million, while profit before tax (“PBT”) and profit after tax (“PAT”) rose 53.0% and 54.3% QoQ to RM10.72 million and RM8.22 million, respectively. The performance reflects improved operational efficiency, tighter cost management and the Group’s continued transition towards higher-value EMS and advanced manufacturing activities.
The Group’s Q2FY2026 performance was also supported by its growing involvement in higher-value product segments, particularly AI-related products, optical products and industrial applications. These areas form an increasingly important part of Ge-Shen’s manufacturing portfolio and are aligned with the Group’s strategy to move further up the value chain by undertaking more complex, high-quality and higher-value projects. The Group will continue to strengthen its capabilities in these focused product areas as it expands its participation in advanced manufacturing and captures new growth opportunities.
On a year-on-year (“YoY”) basis, Q2FY2026 revenue increased 12.1% to RM107.41 million from RM95.80 million in Q2FY2025, mainly driven by the inclusion of the EMS segment, together with higher revenue contributions from the electronic, electrical and home lifestyle segments. Q2FY2026 PAT stood at RM8.22 million, compared with RM9.28 million in the corresponding quarter last year. However, the previous corresponding period benefited from one-off gains arising from the disposal of non-core property, plant and equipment, while the current quarter’s performance was supported by stronger underlying contributions from the Group’s core operations as Ge-Shen continued to advance its transformation strategy.
For the six-month period ended 30 June 2026 (“1HFY2026”), Ge-Shen recorded revenue of RM197.56 million, representing a 31.5% YoY increase from RM150.29 million. PBT increased to RM17.73 million from RM17.35 million, while PAT stood at RM13.55 million compared with RM14.56 million previously. Notably, the corresponding period in 2025 included a RM4.90 million gain on disposal of property, plant and equipment, compared with RM0.07 million in 1HFY2026, highlighting the improvement in the Group’s underlying operating performance.
Dr. Adrian Foong Hong Nian, Chief Executive Officer cum Executive Director of Ge-Shen said, “Our Q2FY2026 performance demonstrates that the strategic transformation we have undertaken is progressively translating into stronger underlying operations. Following a softer first quarter, we achieved a strong rebound in revenue and profitability, supported by improved plant utilisation, tighter cost discipline and greater operational efficiency across the Group.”
He added, “Moving forward, we will continue to strengthen our capabilities and deepen our focus on key product areas such as optical, AI-related and medical products, where we see opportunities to undertake more complex, high-quality and higher-value manufacturing. Local Assembly will play an increasingly important role in this strategy, particularly through its exposure to AI-related and optical products. Together with our broader EMS capabilities and ongoing capacity expansion, we believe this will position Ge-Shen to move further up the manufacturing value chain and capture new opportunities across these growing markets.”
During the period, Ge-Shen completed the acquisition of an additional 40% equity interest in Local Assembly for RM52.0 million, strengthening the Group’s operational control and integration of its EMS platform. Local Assembly’s contribution is now reflected on an enlarged basis from Q2FY2026 onwards and has become the Group’s single largest contributor to sales.
The Group is also progressively expanding its manufacturing capabilities to support its next phase of growth. Local Assembly’s clean room facility is being expanded from 5,000 sq ft to 20,000 sq ft, representing a fourfold increase in controlled-environment capacity and strengthening its ability to undertake more complex and higher-value projects. In parallel, Amity’s Printed Circuit Board Assembly (“PCBA”) manufacturing operations have expanded from 7,500 sq ft to a new 21,000 sq ft facility, enhancing the Group’s production and assembly capabilities and enabling a more comprehensive one-stop manufacturing solution.
Separately, Ge-Shen Plastic Sdn. Bhd. entered into a sale and purchase agreement for the proposed disposal of five freehold industrial land parcels in Johor Bahru for a total cash consideration of RM35.5 million. The proposed disposal, which is expected to be completed in the second half of 2026, forms part of the Group’s ongoing strategy to redeploy capital from non-core assets towards manufacturing and technology investments.
In conjunction with the results announcement, Ge-Shen also declared a single-tier interim dividend of 1.5 sen per ordinary share for FY2026, payable on 8 October 2026 to shareholders whose names appear in the Record of Depositors on 29 September 2026. The dividend reflects the Group’s commitment to delivering value to shareholders while maintaining sufficient financial flexibility to support its ongoing investments in higher-value manufacturing capabilities and future growth opportunities.
Looking ahead, Ge-Shen enters the second half of FY2026 with accelerating revenue momentum, a strong sequential recovery in profitability and major capacity and ownership investments substantially in place. Supported by its expanding project pipeline, growing exposure to semiconductor, artificial intelligence (“AI”) and data-centre opportunities, as well as an increasingly diversified customer and product base, the Group believes it is well-positioned to pursue continued growth and create sustainable long-term value for shareholders.
