MCE Holdings Enters Growth Phase with Landmark Contract Wins and Global Expansion

MCE Holdings is entering a growth phase, driven by contract wins, global expansion, and diversification into high-value automotive electronics. The company secured contracts to supply infotainment and ADAS systems to Perodua, with potential revenue per vehicle of RM3,000. MCE also won contracts in the US market and is moving into new verticals, such as non-automotive products and mmWave radar segments. The group has turned around its pre-FY22 losses and is expected to grow its core earnings at a 15.8% CAGR between FY25 and FY27.

Title: MCE Holdings Bhd: Entering a Multi-Year Growth Phase with Strategic Contract Wins and Global Expansion

MCE Holdings Bhd (KL:MCEHLDG) is poised to enter a significant growth phase, driven by a series of strategic contract wins, global expansion, and diversification into high-value automotive electronics. The company has secured a landmark supply deal with Perodua for infotainment and advanced driver-assistance systems (ADAS) in its upcoming electric vehicle (EV) model, marking a pivotal breakthrough into the EV supply chain [1]. This contract is expected to contribute between RM39.8 million and RM59.7 million annually to MCE’s revenue, representing a substantial growth driver [1].

In addition to its entry into the EV market, MCE has secured contracts in the United States. The company has won deals with Nasdaq-listed automotive aftermarket player Dorman and Michigan-based JVIS, a supplier to major carmakers. The JVIS deal, worth RM91.7 million over five years, is expected to add RM18.3 million annually to revenue [1]. These contracts reflect MCE’s growing global competitiveness and technical capabilities.

MCE is also expanding into new verticals and markets. The company has entered joint ventures with Hong Kong’s Sounding Industries for non-automotive manufacturing in Johor, China’s Nanjing Chuhang for ADAS mmWave radar production in Serendah, and partnerships with Chery-linked suppliers to participate in the carmaker’s Malaysian localisation plans [1]. Additionally, MCE has formed a joint venture with India’s Abhishek Electronics to tap into the fast-growing Indian automotive market [1].

The company’s strong balance sheet, with a net cash position of RM83.6 million, provides financial flexibility to execute these expansion plans [1]. Hong Leong Investment Bank (HLIB) projects core earnings growth for FY25 to FY27 at a compound annual growth rate (CAGR) of 15.8%, with contributions from US contracts and non-automotive segments beginning in the first half of FY26, followed by a stronger uplift in the second half as Perodua’s EV supply ramps up [1].

By FY27, MCE is expected to benefit from the full-year impact of EV-related revenue, initial JVIS deliveries, and scaling of both Dorman and non-automotive orders [1]. This growth trajectory positions MCE as a resilient and scalable play on the sector’s long-term transformation, supported by stable domestic demand from Proton and Perodua, rising export exposure, and multiple high-margin growth drivers [1].

References
1. [Business Today](https://www.businesstoday.com.my/2025/08/11/mce-makes-pivotal-breakthrough-in-ev-supply-chain/)
2. [KLSE Screener](https://www.klsescreener.com/v2/news/view/1570429/mce-eyes-growth-on-perodua-ev-us-expansion-hlib)
3. [The Edge Malaysia](https://theedgemalaysia.com/node/766108)
4. [Seeking Alpha](https://seekingalpha.com/article/4812102-89bio-promising-as-pegozafermin-nears-phase-3-readout)