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FoundPac bullish about cable assembly and wire harness division

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GEORGE TOWN: Foundpac Group Bhd’s newly-acquired cable assembly and wire harness business is expected to contribute about 30% of the group’s revenue in its financial year ending June, 30 2023.

SDKM Technologies Sdn Bhd, a 70%-owned subsidiary of FoundPac, manages the cable assembly and wire harness business division.

Group chief executive officer Dato’ Ong Choon Heng told StarBiz that the division was now serving customers in the home appliance and medical devices industries.

“On top of making wire harnesses for audio and visual applications, we are also selling to washing machine, vacuum cleaner and medical device manufacturers.

“The orders are very encouraging,” he said.

The cable assembly and wire harness division contributed about 20% or RM14mil to the group’s revenue in FY22.

“Based on the group’s enquiries and the purchase orders received so far, we are confident of shipping about RM40mil of orders over the next two quarters. SDKM’s contribution should rise to about 30% in FY23,” he said.

Citing a report from The Insight Partners, he said the wire harness market is expected to grow to US$129.9bil (RM580.33bil) in 2028 from US$88.6bil (RM395.82bil) in 2022, increasing at a 6.6% compounded annual growth rate (CAGR) per annum.

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SDKM managing director Carine Ng said the selling price of cable and wire harnesses is about US$2,900 (RM12,955) per piece for medical devices application.

Carine said SDKM was now exploring producing cables and wire harnesses for electric vehicles, which has robust prospects.

“We are also considering venturing into the production of box-build consumer electronic products,” she said.

“Currently, Asia has the highest number of superchargers or DC chargers worldwide. These superchargers are projected to increase rapidly in Asia, North America and Europe.

“We expect to see a massive expansion of electric vehicle charging stations in the next five to 10 years,” she said.

Carine added that SDKM was now exploring a new operation outside Malaysia.

“There are many multinational corporations in South-East Asia that require our wire harness and power cord products,” she said.

For FY22, the group posted RM12.3mil in after tax profit on the back of a RM71mil revenue compared to RM11.6mil and RM48.9mil, respectively, in the previous year.


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