Pekat Group Berhad today announced its fourth quarter (“4QFY23”) and 12 months financial results ended 31 December 2023 (“FY23”).

For the full year, Pekat posted its best-ever revenue of RM227.6 million in FY23, an increase of 27.0% from RM179.2 million a year ago. The double-digit growth was mainly driven by higher project revenue recorded in the solar PV segment. For FY23, the solar PV segment posted solid results with revenue surging 44.2% to RM156.3 million from RM108.4 million a year ago due to the execution of more concurrent commercial and industrial (“C&I”) and residential projects. The Company’s record revenue performance also translated into a stellar net profit of RM13.7 million in FY23, an increase of RM3.7 million or 36.8% from RM10.0 million in FY22. Earnings per share rose to 2.12 sen from 1.56 sen previously. As of 31 December 2023, Pekat’s cash position stood at RM18.9 million and recorded a positive cash flow of RM21.5 million from operating activities in FY23. Net assets per share of the Company stood at 21 sen.

For 4QFY23, Pekat’s revenue rose 29.8% to RM58.4 million from RM45.0 million a year ago driven by higher revenue contribution recorded in the solar PV segment mainly due to execution of more C&I rooftop solar projects. The trading segment also saw significant growth in 4QFY23, primarily due to higher sales of surge protection devices and accessories. Corresponding with the increase in revenue in 4QFY23, Pekat recorded a 45.2% jump in net profit to RM3.5 million from RM2.4 million in 4QFY22. Earnings per share for the quarter under review improve to 0.54 sen from 0.36 sen a year ago.

Reviewing its performance, Mr Tai Yee Chee (戴于智), Chief Executive Officer of Pekat, said the FY23 results was the highest annual performance recorded by Pekat since its listing on the ACE Market of Bursa Malaysia Securities Berhad in June 2021. “Since our listing in June 2021, we are focusing on projects that give us better profit margins, while delivering end-to-end solutions that provide clients with peace of mind for their solar PV and ELP systems.

“In the solar PV segment, unlike large-scale solar projects with longer turnaround time, we focus on C&I and residential clients where projects are fast-tracked. This allows us the flexibility in managing costs, and to pass on some of the material costs to customers,” he added.

Pekat had in 2021 set up Solaroo Systems Sdn Bhd to focus on small-scale solar PV systems for the residential solar rooftop projects.
Further solidifying its commitment to a greener future, Pekat secured a 29.99 MWac export capacity solar power plant project under the Corporate Green Power Programme.

“This achievement marks the Company’s pioneering foray into developing, owning, and operating large-scale solar plants, set to boost its recurring revenue stream upon the project’s completion by the end of 2025,” said Mr Tai.

Additionally, the Company’s ELP division stands to benefit from the stricter safety standards mandated by the Energy Commission of Malaysia. These regulations necessitate ELP systems in new buildings and require existing ones to undergo compliance assessments and potential upgrades. This presents a promising opportunity for the Group to expand its ELP business and contribute to enhanced safety measures across Malaysian structures.

“Looking ahead, Pekat is well-positioned to improve its operational efficiency and grow its order book. Barring any unforeseen circumstances, we are cautiously optimistic that the Company’s performance will remain satisfactory for the financial year ending 31 December 2024,” Mr Tai further added.