Pekat Group Berhad (Bursa: 0233)(柏卡集团有限公司) has posted its strongest quarterly profit in over two years for the three months ended 30 June 2024, led by a strong performance from its ELP and trading segments.
Profit after tax for the quarter rose 34.18% to RM4.66 million from RM3.47 million in 2QFY2023. It was Pekat’s strongest quarterly bottom line since 4QFY2021. The PAT growth on bigger revenue contributions from higher margin divisions, namely ELP division on higher project execution rates and trading division. Quarterly earnings per share (“EPS”) improved to 0.72 sen per share from 0.54 sen per share a year ago.
Revenue for the quarter declined 4.86% due to lower contribution from solar PV division at RM33.15 million, from RM42.80 million a year ago, attributable to project execution delays. This was offset by a 47.14% increase in ELP division’s revenue to RM11.56 million, and a 34.75% growth in trading division’s revenue to RM11.86 million.
For the six months ended 30 June 2024, Pekat’s PAT rose by a commendable 26.81% year-on-year to RM8.46 million from RM6.67 million in 1H2023, giving an EPS of 1.31 sen per share compared to 1.03 sen per share a year ago.
In 1HFY2024, Pekat’s solar PV division contributed about 61.13% of group revenue at RM69.81 million, followed by trading division (20.85% or RM23.81 million) and ELP division (18.02% or RM20.58 million).
Backed by strong track record, the solid contribution from Pekat’s ELP division hints towards heightened activity levels in this core segment, including from the booming data centre market, said Chief Executive Officer Mr Tai Yee Chee (戴于智).
“Following Pekat’s latest ELP project win in August for a data centre facility, we remain confident on the division’s prospects and will continue to pursue order book growth in this sector.”
“The higher contribution from ELP and trading divisions further reflects the group’s resilience in addressing cyclicality across our operating segments,” Mr Tai said.
For the solar PV segment, in the pipeline are the execution of Pekat’s 29.99MWac solar PV power plant under the Corporate Green Power Programme, as well as opportunities in the fifth large scale solar (LSS5) awards totalling 2,000MW that was announced recently.
“Both large-scale and rooftop solar markets remain vibrant with more project roll-outs ahead, as well as continuous supportive policies such as rebates for domestic customers that will support demand in the foreseeable future,” Mr Tai said.
“Pekat will continuously replenish our order book in the prevailing market conditions, while managing operational efficiency to remain competitive,” he added.
