KUALA LUMPUR (Aug 19): Mega First Corp Bhd's net profit rose 7.36% to RM87.32 million for the second quarter ended June 30, 2021 (2QFY21), from RM81.33 million a year ago, helped by higher earnings contributions from its renewable energy and resources divisions.

The group said quarterly revenue increased 14.67% to RM207.84 million, from RM181.26 million previously, on higher sales from those two divisions as well as the third core segment of packaging.

Mega First declared an interim dividend of 3.25 sen per share.

In a filing with Bursa Malaysia, the group said the improvement in 2QFY21 profit was largely due to a 5.3% increase in profit contribution from renewable energy of RM98.7 million, and higher profit contribution from the resources division of RM4.4 million from RM2 million a year ago.

However, these were partially offset by higher foreign exchange loss (a RM1.3 million change) and a 15.6% decline in contribution from the packaging division.

For the six months ended June 30, 2021, Mega First's cumulative net profit grew 15.81% to RM160.66 million, from RM138.73 million a year earlier, while revenue climbed 17.43% to RM401.56 million from RM341.94 million.

For its hydropower project Don Sahong, the group said the average equivalent availability factor for 2021 is expected to be better than in 2020, which would translate into higher earnings for the group.

The group remains hopeful that Don Sahong will start construction of the fifth unit before the end of 2021.

Meanwhile, Mega First said solar contribution to earnings for the remaining part of the year will benefit from the commissioning of new C&I projects totalling 13 MW in May.

"This brought the cumulative C&I projects commissioned to date to 14.5 MW," it said.

The group said another 6.4 MW projects secured in May will progressively be completed and commissioned over the period from October to next March.

Mega First's share price closed five sen or 1.35% lower at RM3.66, valuing the group at RM3.67 billion.