The electronic manufacturing services provider’s net profit plummeted over 90% to RM6.37 million in its fourth quarter ended Dec 31, 2025 (Q4 FY2025) from RM64.06 million a year ago. Quarterly revenue fell 60% to RM1.2 billion from RM3.03 billion a year earlier.
For the full year, net profit fell 22% to RM125.06 million from RM160.19 million while revenue jumped 44.4% to RM7.61 billion from RM5.27 billion in FY2024.
The Penang-based company attributed the sharp drop in Q4 profit primarily to lower contributions from its data computing division.
Its shares fell as much as 12% or 12.5 sen to 88.5 sen in early trading before closing one sen higher at 89.5 sen, valuing the group at RM2.04 billion. It was the eighth most traded stock with 51.5 million shares changing hands.
NationGate, a contract manufacturer for US AI chip powerhouse Nvidia Corp, has seen its share price fall nearly 52% in the past year.
The stock is widely considered a proxy for the AI-led graphics processing unit (GPU) demand boom, which has lost steam in recent months.
Kenanga Research said NationGate would have recorded a core net loss in Q4 if not for gains on foreign exchange and financial instruments.
The results may reflect a relatively high-cost base coupled with “lower operating leverage in the absence of meaningful AI server contributions”, the research house said in a note today.
Phillip Capital Research said limited visibility on GPU server demand coupled with the ringgit’s appreciation against the US dollar is expected to put further pressure on the company’s “inherently thin server margins”.
However, NationGate is cautiously optimistic on its FY2026 prospects. It expects to benefit from a projected recovery in the global semiconductor sector, with strong demand for logic and memory products, and sustained momentum for AI, data centres and electric vehicle (EV) applications.
“The group remains well-positioned to benefit from customer diversification strategies and growth in the AI, EV and industrial-automation markets,” it said in a statement.
Listed in 2022, NationGate is a turnkey one-stop solutions provider, focussing on the assembly and testing of electronic components and products.
Its co-founder and managing director Ooi Eng Leong and his wife Tan Ah Geok have a controlling stake in the group.
Ooi, 57, holds 48.26% while Tan has a 6.48% interest, according to the company’s 2024 annual report.