The solar photovoltaic and Earthing and Lightning Protection (E&LP) specialist reported a 16.84% rise in net profit to RM7.63 million for the nine months period ended 30 September 2022 (9MFY2022), from RM6.53 million a year earlier, on the back of higher revenue contribution from its solar and E&LP segments.
Meanwhile, its earnings per share for 9MFY2022 has improved to 1.20 sen from 1.18 sen previously.
The Company’s revenue for 9MFY2022 rose 10.15% to RM134.2 million, from RM121.8 million due to resumption of business activities compared to first half of 2021 which was still being affected by movement restrictions imposed by the government.
“The Company continued to be prudent in managing its gearing ratio, as it reduced its total borrowings to RM22.84 million, from RM27.77 million at the beginning of the year. Hence the gearing ratio for the Company eased from 0.24 to 0.20,” Mr Chin Soo Mau, Chief Executive Officer of Pekat said
Project activities continue to pick up in the second half of 2022, including the preliminary design and works of the 10MWac Large-Scale Solar (LSS) project at Batang Padang, Perak.
Its projects with Indah Water and Majlis Bandaraya Seberang Perai are also progressing well towards completion.
“These projects are essential to the Group to build its project references for future tender of LSS and state-linked projects,” Mr Chin remarked.
“During the financial quarter ended 30 September 2022 (3QFY2022), Pekat secured new solar projects worth RM29.5 million and E&LP projects worth RM6.6 million to expand its outstanding order book to RM206.6 million,” he added.
Pekat’s 3QFY2022 net profit rose 119% to RM2.22 million from RM1.02 million on the back of higher revenue contribution from the solar, E&LP and trading segments.
Its revenue increased 15.89% to RM46.49 million from RM40.11 million, compared to 12.78% increase in cost of sales from RM31.2 million to RM35.19 million, for 3QFY2022.
Solar segment’s revenue rose 9.9% as Pekat saw higher execution of commercial and industrial solar projects, coupled with Solaroo Systems Sdn Bhd’s contribution in the residential solar segment.
Whilst revenue from the E&LP segment rose 35.6%, supported by execution of a project in Kulim, Kedah for an industrial customer.
The trading arm which sells solar energy and E&LP related products also recorded 22.2% increase in revenue, by tapping into the growth of solar and E&LP segments.
“The outlook of the solar energy industry remains bright, as consumers seek to protect against future increases in energy costs, while the global solar PV panel supply chain heads towards stabilization.”
“Coupled with the continued momentum in the E&LP business due to higher demand and the ongoing recovery of the construction sector, the Company is upbeat about maintaining satisfactory results for the two core businesses,” Mr Chin concluded.
For the latest Business News and happenings, follow BusinessToday on Twitter