KUALA LUMPUR: Automotive upholstery maker Pecca Group Bhd is banking on its aviation segment to unlock its next phase of growth, according to managing director Datuk Kelvin Teoh Hwa Cheng.
"In the 2023 fiscal year, Pecca earned nearly 98% of its revenue from the automotive upholstery business. In five years, we aim to derive at least 15% of our earnings from our aviation business,” Teoh said in a statement.
Pecca secured its first purchase order to service a 180-seat, Europe-registered Airbus A320 passenger aircraft in the first quarter ended Sept 30, 2023 (1QFY24).
Teoh said the EASA certificate, which it received from the European Union Aviation Safety Agency earlier this year, is opening many doors for the group.
"We are now able to serve the wider aviation industry, a market that includes commercial airlines, aircraft lessors and investors, as well as the maintenance, repair and operations (MRO) ecosystem,” he said.
“We are now focused on building a strong and stable customer base with the help of our two partners, Global Component Asia Sdn Bhd and Aero Cabin Solutions, which have strong capabilities and networks in the aviation market. We will also ramp up our marketing activities and efforts to secure approvals with more global aviation authorities,” Teoh said, adding that its current pipeline indicated an estimated doubling of revenue for Pecca's aviation segment in FY2024.
“We expect to gain further momentum as we build awareness, branding, credibility, and confidence with aviation players."
Pecca was last traded at RM1.34 with 1.22 million shares traded. Year-to-date, the counter has risen 61.45%. Pecca’s market capitalisation surpassed RM1bil for the first time on Nov 30, 2023.