Electrical engineering service provider HE Group Bhd has recorded a 7.8% year-on-year (YoY) increase for its first nine months ended Dec 31, 2024 (9M24), revenue amounting to RM172.6 million compared to 9M23.
The growth was primarily attributable to increased contributions from its Electrical Equipment Hook-Up and Retrofitting segment.
At the same time, the company's profit after tax (PAT) grew by 24.5% to RM10.3 million compared to RM8.3 million in 9M23, resulting in an expanded PAT margin of 6% in 9M24, up from 5.2% in 9M23.
HE Group's overall revenue was primarily contributed by the Power Distribution System segment, generating RM102.1 million, or 59.1%, to the overall revenue in 9M24 (9M23: RM104.6 million).
This was followed by the Electrical Equipment Hook-Up and Retrofitting segment which grew substantially, expanding more than fivefold to RM42.3 million, representing 24.5%, of total revenue in 9M24 compared to RM7.4 million in 9M23.
Revenue from the Other Building Systems and Works division amounted to RM27.3 million, meanwhile, contributed 15.8% to the total revenue.
As for the third quarter ended Dec 31, 2024 (3Q24), HE Group recorded a softer revenue of RM58.9 million compared to RM78.9 million recorded in 3Q23 due to lower work deliveries from the Power Distribution System, and Other Building Systems and Works segments.
PAT, however, increased by 31% YoY to RM4.6 million in 3Q24 from RM3.5 million in 3Q23. This resulted in a hike in PAT margin to 7.8% compared to 4.5% in 3Q23.
In terms of quarter-on-quarter (QoQ) comparison, the company recorded a 20.5% increase in revenue that is amounted to RM58.9 million for 3Q24 compared to RM48.9 million in 2Q24 due to higher work deliveries for the Electrical Equipment Hook-Up and Retrofitting segment.
HE Group's profitability also expanded by 9.9% QoQ to RM4.6 million in 3Q24 compared to RM4.2 million in 2Q24 on the back of a higher revenue base.
Meanwhile, HE Group Managing Director Haw Chee Seng said the company's order book is valued at RM114.2 million as of Oct 31, 2024.
"While we remain mindful of market conditions, our robust tender book and the increased market activity positions us favourably for continued growth.
"In turn, we strive to secure new contracts and expand our order book by capitalising on the strengthening Malaysian economy, supported by the robust performance in the services, manufacturing and construction sectors," he said in a statement.
