KUALA LUMPUR: Pecca Group Bhd expects to remain as a beneficiary of strong demand for its upholstery products, particularly within the automotive and aviation segments.
“The management will continue focusing on prudent procurement strategies and improving the efficiency of the production process, seeking to extract cost efficiency and enhance productivity levels,” the automotive upholstery maker said in a filing with Bursa Malaysia.
In the third quarter ended March 31, Pecca posted a net profit of RM8.56mil against RM8.09mil in the previous corresponding period.
The company said the higher profit was driven by a 28% year-on-year increase in revenue to RM58.58mil during the quarter.
During the third quarter, Pecca reported earnings per share of 1.14 sen versus 1.08 previously.
For the first nine months to March 31, it posted a net profit of RM25.3mil on revenue of RM166.9mil.
Chief executive officer Foo Ken Nee said demand for upholstery servicing and maintenance services is rising, as some of our major clients including Perodua, Toyota and Proton have decided to ramp up production or introduce new models this year.
“As we continue positioning ourselves as a supplier of choice for global and local automotive companies, we see further room to expand this business - both in Malaysia and across the region.
“We are also very excited about what lies ahead for Pecca’s aviation business, which currently contributes only a small amount to our revenue.
“The recent EASA certification obtained will help expand this business as one of our strategic key contributors, given that aircraft upholstery commands better pricing and margins, compared to the car seat cover for automotive industry,” he said in a statement.
Foo added that Pecca Aviation became the first Malaysian company to receive Production Organisation Approval (POA) C2 certification from the European Union Aviation Safety Agency (EASA).
“Before the EASA certification, the market for our aviation products and services are limited to Malaysian-registered aircraft.
“With Pecca Aviation now qualified to serve EASA-registered aircraft, we can tap a significantly wider, domestic and global customer base,” he added.