Pekat optimistic about 2022 as activities resume

“Additionally, the outlook for solar photovoltaic (PV) in Malaysia remains positive, as both the public and private sectors adopt various initiatives and strategies to achieve net-zero carbon emissions,” said the solar PV and earthing and lightning protection (ELP) specialist in a statement.

PETALING JAYA: Pekat Group Bhd is optimistic of its prospects in 2022, as construction and economic activities have resumed.

“Additionally, the outlook for solar photovoltaic (PV) in Malaysia remains positive, as both the public and private sectors adopt various initiatives and strategies to achieve net-zero carbon emissions,” said the solar PV and earthing and lightning protection (ELP) specialist in a statement.

Pekat managing director Chin Soo Mau noted that 2021 was a challenging year, as the Covid-19 pandemic continued to hamper the construction progress for most of the group’s key projects and divisions, which resulted in lower than projected revenue contributions across the board.

“Our profitability was also affected by a one-off listing expense of RM1.9mil (Pekat was listed on the ACE Market on June 23, 2021),” said Chin, while pointing out that the fourth quarter of 2021 saw the group’s financial performance recover as construction activities resumed and most states in Malaysia transitioned to phase four of the National Recovery Plan.

“We are looking to build on this positive momentum and execute our order book as economic and construction activities progress at full capacity. We look forward to delivering sustainable earnings growth in the quarters ahead backed by our outstanding order book of RM175.4mil,” he said.

For its fourth quarter ended Dec 31, 2021 (Q4’21), the group posted a 480% quarter-on-quarter (q-o-q) jump in profit after tax to RM5.9mil, largely driven by higher gross margins of 30.4% (Q3’21: 22.2%), brought about by progress billings from projects with higher overall margins. Revenue for Q4’21 saw a 35.6% q-o-q jump to RM54.4mil as construction activities resumed.

For financial year 2021 (FY21), the group’s profit after tax dropped 8.6% year-on-year to RM12.4mil although revenue grew 40.4% to RM176.2mil.

Revenue in FY21 comprised RM114.4mil from the solar PV segment, RM29mil from the ELP segment and RM32.8mil from the trading segment.

The group said its financial position remained robust as at Dec 31, 2021, with a net cash position of RM4.25mil while shareholders’ funds amounted to RM119.1mil.