KUALA LUMPUR (July 20): Pecca Group Bhd's shares rose to their highest level in early trades today since its listing in April this year, as investors deemed the group will benefit from Perodua's new sedan — Bezza.

At 11.03 a.m., the stock narrowed its gains to trade at RM1.82, still up seven sen or 4%, with 602,300 shares traded, giving it a market value of RM329 million.

The shares of the automotive upholstery manufacturer surged to a high of RM1.85, shortly after opening bell with 235,700 shares exchanged, according to Bloomberg data.

It had climbed 43 sen or 30.3% as compared to its initial public offering price (IPO) of RM1.42 apiece. Over the past week, it gained 22 sen or 13.5%.

According to media reports, Perodua projects bookings of about 85% would be made for its 1.3 litre model and the remaining 15% for its 1.0 litre model.

Perodua expects 15,000 bookings on average in the first three months of sales of Bezza, with a monthly 10,000 units average registration in new model’s first three months, before tapering to 7,700 units later.

According to Pecca's prospectus, the company is the sole supplier of leather car seat covers to Perodua. It supplied car seat covers to Fuji Seats (Malaysia) Sdn Bhd and Perodua Sales Sdn Bhd, who collectively contributed 23.18% in revenue for the financial year ended June 30, 2015 (FY15).

In the third quarter ended March 31, 2016 (3QFY16), it posted a net profit of RM3.08 million on RM27 million of revenue. For the year-to-date basis, it registered a net profit of RM11.66 million on RM96.72 million revenue.

Going forward, Pecca said it will exercise prudence and continuously stay focused on expanding its export sales and explore new business opportunities to sustain and grow its business.

This is due to the domestic automotive industry being challenging and on a downward cycle, with dwindling car sales numbers, the company noted.

Pecca also shared that it has secured some new leather car seat covers projects, which will commence mass production in the next few months.

"Barring any unforeseen circumstances, the board is cautiously optimistic of its performance, going forward," it added.