Pecca climbs on DCA nod for aviation entry

PECCA Group Bhd, which makes leather upholstery for cars and aircraft, plans to raise up to RM67.87mil from the issuance of 47.79 million new shares.

KUALA LUMPUR: Pecca Group Bhd’s share price rose to a high of RM2.07 early Friday, bucking the cautious market after its subsidiary received the Department of Civil Aviation (DCA) approval to undertake the leather upholstery for aircraft.

At 10.05am, Pecca was up nine sen to RM2.03. There were 1.02 million shares done at prices ranging from RM1.98 to RM2.07.

The FBM KLCI fell 6.16 points or 0.36% to 1,685.22. Turnover was 359.02 million shares valued at RM162.48mil. There were 182 gainers, 247 losers and 277 counters unchanged.

On Thursday, Pecca announced its 60%-owned PAviation received the DCA’s greenlight to undertake more leather upholstery in the aviation industry.

Maybank Investment Bank Research said Pecca is the first local-breed company to secure a specific leather upholstery scope licence for the aviation industry from DCA. 

“Opportunities in the aviation industry coupled with sustained momentum in its Perodua exposure are key drivers for earnings growth. 

“Our earnings estimates, which have yet to incorporate any contribution from the aviation industry, are unchanged for now pending job wins. 

“Reiterate Buy with a higher target price of RM2.18 as we peg Pecca to 14.5 times CY17 EPS (13 times previously), the re-rating for its entry into another avenue of growth,” it said.
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