D&O Green Technologies Bhd is poised to see its smart LED sales double to between 15 and 18 per cent this year, said Public Investment Bank Bhd (PublicInvest Research).
The firm said the growth in sales will be driven by higher demand from BMW and a new customer base in China and South Korea.
“On a positive note, BMW’s tier-1 module maker’s sales now account for 15-18 per cent of its group sales, up from nine per cent previously,” said the firm.
The firm said D&O is expanding its footprint in the Indian and South Korean markets to reduce its heavy dependence on China’s market.
This year, the group targets 1.2 billion per quarter across all the product segments, which could collectively contribute about eight per cent sales growth for FY26. This would mainly be driven by the sale of safety stocks worth RM87 million, as the group plans to lower inventory turnover from four months to 2.5 months under the new inventory policy.
“In short, the group expects to register a normalised net margin of four to five per cent for financial year 2026 (FY26), with a seasonally strong pick-up from the third quarter onwards,” it added.
For the group’s integrated circuit chip development, PublicInvest Research said the wafer is on track to be ready by the third quarter, and it will take another six months for integrated circuit chip packaging in Taiwan and various reliability tests before customer qualification takes place by the second half of 2027.
“The in-house chip design project will significantly reduce smart LED production costs, attracting strong demand from other automakers.”
