Pekat’s 3Q net profit jumps two-fold on higher revenue

Pekat’s 3Q net profit jumps two-fold on higher revenue
-A +A

KUALA LUMPUR (Nov 22): ACE Market-listed Pekat Group Bhd’s net profit surged 125.3% to RM2.25 million for the third quarter ended Sept 30, 2022 (3QFY2022), from RM1 million a year prior, on the back of revenue growth recorded in all business segments.

Earnings per share rose to 0.35 sen from 0.16 sen, according to the end-to-end solar photovoltaic (PV) systems services provider’s Bursa Malaysia filing on Tuesday (Nov 22).

Revenue for the quarter increased by 15.89% to RM46.49 million as compared to RM40.11 million in 3QFY2021. During the current quarter, RM29.8 million was contributed by the solar PV segment, RM8.0 million was from the earthing and lightning protection (E&LP) segment and RM8.7 million was from the trading segment.

The group’s bulk revenue contributor, the solar PV segment, logged a 9.94% jump in its revenue to RM29.81 million as compared to RM27.11 million.

“In addition to more commercial and industrial solar projects during 3QFY2022, the group’s residential solar energy business unit, Solaroo Systems Sdn Bhd, which came into operations end-2021, had also contributed to the growth of revenue for the segment.

Meanwhile, its E&LP segment’s revenue increased 35.62% to RM8 million from RM5.9 million, while its trading segment’s revenue rose 22.24% to RM8.68 million from RM7.1 million.

“For the E&LP segment, the hike in revenue was particularly due to the execution of [a] project for an industrial customer located in Kulim, Kedah. Consistent with the trend of [the] solar PV and E&LP segments, our trading arm, which sells solar energy and E&PL related products, had also recorded higher sales in 3QFY2022,” Pekat said.

For the nine months ended Sept 30, 2022 (9MFY2022), Pekat’s net profit rose 17.25% to RM7.72 million from RM6.59 million, as cumulative revenue increased 10.15% to RM134.2 million from RM121.83 million.

On the group’s prospects going forward, Pekat said that despite expecting headwinds comprising higher raw material prices and foreign currency fluctuations, the group is well positioned to grow its order book and improve its operational efficiency.

Shares in Pekat finished 1.5 sen or 3.33% lower at 43.5 sen, giving the group a market capitalisation of RM280.56 million.

Isabelle Francis