Formosa Prosonic Industries Bhd (KL:FPI), a key player in the speaker systems manufacturing space, has seen a major shift in ownership at a time when the group faces earnings headwinds.
🔹 Major Shareholding Change
FPI’s group managing director, Shih Chao Yuan, has emerged as the company’s largest shareholder after acquiring a 24.5% stake from Taiwan-based electronics giant Wistron Corp.
- The acquisition involved 62.86 million shares, purchased via a direct business transaction on Sept 12.
- Buyers included Shih, his wife Wu Swee Ngor, and his private investment vehicle, Formosa Prosonic Holdings Sdn Bhd.
- The purchase price was RM1.14 per share, a 12.3% discount to FPI’s closing price of RM1.30 on the same day.
- Total consideration: RM71.66 million.
This move consolidates Shih’s influence and signals long-term confidence in FPI despite current business challenges.
🔹 Earnings Performance
While ownership changes are positive from a governance perspective, FPI’s recent financials highlight a difficult backdrop:
- 2QFY2025 revenue: RM109.8 million, down 40% from RM185 million a year earlier.
- 1H2025 net profit: RM9.85 million, a sharp 81% decline from RM51.7 million in 1H2024.
- 1H2025 revenue: RM207.3 million, down 38% YoY.
Management attributed the downturn to:
✔️ Lower sales volume due to weaker global demand
✔️ Rising operating expenses
✔️ Excess production capacity
✔️ Tariff-related headwinds impacting exports
🔹 Outlook & Market Challenges
Looking forward, FPI flagged a challenging operating environment, citing:
- Global economic uncertainties
- Trade protectionism and tariff risks
- Geopolitical tensions are disrupting supply chains
The company noted it will remain vigilant, taking measures to minimise risks and optimise operations to navigate through industry turbulence.
🔹 My Bursa Watch Takeaway
While the earnings slump paints a cautious picture for the near term, the shareholding acquisition by the MD signals management’s conviction in the company’s long-term prospects. Investors should monitor:
- Demand recovery in the global consumer electronics sector
- Cost optimisation strategies by FPI
- Broader macroeconomic shifts and trade policy developments
👉 My Bursa Watch Insight: For investors, FPI represents a turnaround watchlist stock – near-term pressure is evident, but insider confidence through substantial equity acquisition suggests that management sees value ahead.
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