Tariff & China factors. Going forward, Malaysia manufacturers will face stiff margin compression due to cost down requested by customers (competitive pricing by China companies with similar products). Days of high YoY/QoQ revenue growth & double digits margin are over. They Came They Saw They Conquered !

Get your fact right, EG has almost 500m borrowings denominated in USD, which are recorded under month-end closing rate, whereas Sales and Receivables are based on average spot rate, so it is treated as a natural hedging. With such large base of USD borrowings, in short term they will record more Unrealised Gain than Realised Loss which we can see now.

Core profit (excluding foreign exchange effects) surged to RM23.948 million in Q1’26, outperforming the RM20.094 million recorded in Q1’25. Quarter-on-quarter momentum is even stronger, with core profit jumping from RM14.825 million in Q4’25 to RM23.948 million in Q1’26. This clearly reflects accelerating earnings strength both YoY and QoQ. Coupled with several highly positive indicators this quarter, the results point to solid growth traction and a bullish outlook moving forward.