Pestech's 1Q net profit down 21%, expects improved full-year earnings

Pestech's 1Q net profit  down 21%, expects improved full-year earnings

Pestech's 1Q net profit  down 21%, expects improved full-year earnings

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KUALA LUMPUR (Nov 26): Pestech International Bhd registered a net profit of RM11.87 million for its first financial quarter ended Sept 30, 2021 (1QFY22), a decrease of 21.2% from RM15.06 million a year earlier, reflecting the progress of projects undertaken by the construction engineering group.

Earnings per share (EPS) fell to 1.56 sen in 1QFY22 from 1.97 sen in 1QFY21, the group said in a bourse filing.

Revenue also declined 16% to RM207.81 million, from RM248.84 million a year ago.

Compared with the immediate preceding quarter, the net profit was 58.96% lower from RM28.92 million, while revenue dropped 10% from RM231.93 million. EPS on a quarter-on-quarter basis was 58.95% lower from 3.80 sen.

Pestech said it has started off the current financial year ending July 31, 2022 (FY22) with a consistent financial performance by delivering a profit after tax margin of approximately 10%, amid negative influence of the pandemic around the region.

“As such, we foresee a better FY22 and FY23, (if) this trend of normalisation can endure and encourage better trade activities regionally.

“The group is cautiously confident on the quarter-to-quarter performance going forward, as it is supported by [an] order book of RM1.58 billion as at Sept 30, 2021, which translates into about 7.6 times book to bill ratio,” the group added.

Pestech said its current order book could sustain it for the next seven to eight quarters, assuming there are no new orders procured, but notes that it is “utterly not probable”.

“As such, the management envisages that there will be positive demand for both new and upgrades of electrical infrastructure, fuelled especially by the sustainability agenda of nations in the region.

“The outlook of the industry remains robust, whilst remaining riveted towards timely execution of jobs in hand, in order to deliver consistently positive performance to its stakeholders,” it said.

Pestech's share price closed fell three sen or 2.83% to RM1.03 on Friday, giving it a market capitalisation of RM787.22 million.

S Kanagaraju