KUALA LUMPUR (Nov 17): Mega First Corp Bhd’s net profit grew 34.43% to RM119.46 million for the third quarter ended Sept 30, 2022 (3QFY2022), from RM88.86 million for the previous year's corresponding quarter, spurred by higher profit contributions from all business divisions.

The group’s earnings per share for the quarter rose to 12.64 sen from 9.38 sen for 3QFY2021.

The stronger profit came as revenue jumped 59.8% to RM371.53 million from RM232.5 million previously, according to a filing with the local bourse.

Notably, the renewable energy division saw its profit before tax (PBT) expand 15.7% to RM114.3 million from RM98.85 million, mainly on higher hydropower energy income in Laos, while PBT for the packaging division grew 16.2% to RM8.8 million (from RM7.55 million), and by 147% to RM4.9 million (from RM1.98 million) for the resources division, on higher revenue.

Meanwhile, the investment holding and other division reported a PBT of RM18.4 million, compared to a small loss of RM400,000 a year ago. The sharp turnaround was mainly due to a RM12.3 million share of profit from joint ventures and associates, and a higher foreign exchange gain of RM8.8 million.

For the nine months ended Sept 30, 2022, Mega First’s cumulative net profit increased 20.88% to RM301.63 million from RM249.52 million a year ago, as revenue soared 53.9% to RM975.78 million from RM634.05 million amid higher sales.

Excluding the one-off bargain gain of RM125.1 million in 4QFY2021, Mega First expects to continue to register healthy year-on-year earnings growth in 4QFY2022, bolstered mainly by its renewable energy division.

“In the meantime, the group’s manufacturing activities, including joint venture and associates, are expected to face headwinds from slowing consumer demand and intensifying competition on heightened risk of a global recession,” the group commented on its prospects.

Mega First, which is currently trading at a historical price-earnings ratio of 6.42 times, closed unchanged at RM3.28 on Thursday (Nov 17). At the close, the group was valued at RM3.24 billion.