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GEORGE TOWN: PIE Industrial Bhd is on track to achieve a 30% increase in revenue to RM1.3bil for the financial year ending Dec 31, 2022, says group managing director Alvin Mui.

The group would deliver products from its core business segments with a market value of over RM500mil in the second-half of 2022.

The main contributor to the group’s revenue – digital entertainment equipment business – is poised to contribute over 40% this year, added Mui.

While PIE’s supercomputing server, industrial electronics and home appliances, telecommunications, and raw wire and cable assembly segments are expected to generate the remainder of the revenue.

According to Mui, the group’s prospects are good both in the medium and long term as several products under PIE’s core business segments are projected to enjoy healthy growth.

“We expect the supercomputing server business to contribute more than 15% of our revenue in two years,” Mui told StarBiz, adding the group has dedicated a 120,000 sq ft plant to assemble servers and produce printed circuit board assembly or PCBA products.

“The global server market, valued at US$89.66bil (RM407bil) in 2022, is expected to expand at an 8.8% compounded annual growth rate (CAGR) from 2022 to 2031, according to New York-based Kenneth Research.“5G, automotive, cloud gaming and high-performance computing will remain the key drivers for cloud service providers in data centre expansion,” Mui pointed out.

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He also said the group would produce plastic parts and components for new digital entertainment equipment in the fourth quarter of this year.

Based on California-based Grand View Research, the global home entertainment devices market which is valued at US$225bil (RM1.02 trillion) in 2018, is expected to grow at a 6.3% CAGR from 2019 to 2025, said Mui.

“Home entertainment devices will continue to be popular among consumers as they are convenient and economical.

Increasing consumer spending on household leisure activities will drive its growth,” he added.Meanwhile, Mui said the global household appliances market would also augment in size.

According to a recent Reportlinker announcement, the global household appliances market will augment from US$502.28bil (RM2.3 trillion) in 2021 to US$557.7bil (RM2.53 trillion) in 2022 or at an 11% CAGR.

The market will reach US$818.87bil (RM3.71 trillion) in 2026 at a 10.1% CAGR, according to the report.

The growth is mainly due to the companies rearranging their operations and recovering from the Covid-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.

Mui also noted the group would get back a tenanted building in November.

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