Pekat's net profit down to RM4.40mil in 1Q

Pekat Group managing director Chin Soo Mau

KUALA LUMPUR: Pekat Group Bhd posted a net profit of RM4.40 million in the first quarter ended March 31, 2022 (Q1 2022) from RM4.54 million in the same period last year.

Revenue increased by RM3.8 million, or 9.2 per cent, to RM45.5 million from RM41.7 million previously, mainly due to higher revenue from the trading segment.

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In a filing with Bursa Malaysia today, the group said that of the RM45.5 million in revenue, RM26.9 million was contributed by the solar photovoltaics (PV) segment, RM8.2 million from earthing and lightning protection (ELP) segment and RM10.4 million from the trading segment.

"The transition to COVID-19 endemic phase has allowed industries to operate at full capacity and without restrictions.

"As such, there were more orders from the trading segment being fulfilled and delivered to customers as compared to Q1 FY21,” it said.

In a statement, Pekat said it has grown its unbilled order book by 18.5 per cent year-on-year to RM209.3 million from RM176.5 million, backed by 24.1 per cent and 14.2 per cent growth in the solar PV segment and the ELP segment, respectively.

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"This is on the back of continued demand for solar PV solutions as a hedge against rising fuel costs, coupled with the solid penetration of our ELP segment into the growing industrial sector in Penang.

"The order book puts Pekat in a healthy growth trajectory,” it said.

Chief executive officer Chin Soo Mau said despite rising costs, Pekat strategised by focusing on projects with better profit margins, while delivering end-to-end solutions that provide clients with peace of mind for solar PV and ELP systems.

"In the solar PV segment, unlike large-scale solar projects with longer turnaround time, we focus on commercial and industrial (C&I) 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 said.

With an average return on investment of five years involving solar PV systems in this space, it is still an attractive proposition for C&I players to transition into solar energy as a hedge against rising electricity costs, added Chin. - Bernama