GEORGETOWN: Printed-circuit board (PCB) maker GUH Holdings Bhd plans to invest about RM50mil over the next two years to expand its operations in Penang and finance new product development activities.

       Group managing director Datuk Seri Kenneth H’ng Bak Tee told StarBiz that the expansion would increase the group’s production capacity by 20%.

       The Penang plant’s production floor is now operating at an optimal level.

       H’ng said the RM50mil investment would be for purchasing of machinery, automating production processes and developing new multi-layered PCBs for the electric vehicle (EV), Internet of Things and Fifth-Generation (5G) technology markets.

       “The growth prospects of the new industries provide ample opportunities for us to compete for business,” said H’ng.

       “Most countries now have a decarbonisation plan to battle pollution and achieve zero emissions by 2050, so we can expect to see governments worldwide giving more incentives to encourage the use of EVs and plug-in hybrid electric vehicles (PHEVs),” he said.

       Over six million EVs and PHEVs are expected to be sold globally in 2021, representing a 98% increase year-on-year, he added.

       H’ng said Europe is expected to account for the highest share of new electric car registrations in 2021, followed by the United States.

       Global sales of electric passenger vehicles are projected to surpass 10.5 million this year, about four million above 2021 levels, as the technology grows more mainstream, research firm BloombergNEF said in a report.

       “China remains the biggest market and is projected to account for over half of global sales this year, with Europe around 30% and the United States as the third-largest market,” H’ng said.

       He added that the global 5G technology market was anticipated to reach US$667.9bil (RM2.79 trillion) in 2026 from US$5.53bil (RM23.10bil) in 2020.

       “Asia-Pacific would be the highest contributor to the global market, with US$2.20bil (RM9.19bil) in 2020, and is estimated to reach US$329.09bil (RM1.37 trillion) by 2026, registering a compounded annual growth rate (CAGR) of 130.7% during the forecast period, he said, quoting an Allied Market Research report.

       For the nine months of financial year 2021 (FY21), GUH posted RM4.4mil in net profit against RM30mil in net loss in the previous year’s corresponding period.

       For the upcoming quarter, the group foresee stable demand in sales.

       It posted RM14.5 net profit in FY21 on the back of RM278.7mil revenue compared with RM10mil and RM88mil achieved in the previous financial year, respectively.

       “The demand mainly comes from automotive, musical instruments and various smart-home appliances such as air conditions, washing machines, audio systems and refrigerators,” he said.

       According to an EMR research report, the global smart-home appliances market will grow from US$28.2bil (RM117.81bil) in 2020 at a 17.3% CAGR to a value of around US$73.6bil (RM307.49bil) by 2026.