Pekat Group Berhad (Pekat), a specialist in Solar Photovoltaic (PV) and Earthing and Lightning Protection (ELP) systems, has reported its strongest quarterly profit in over two years for the three months ending 30 June 2024 (2QFY2024). The company's profit after tax (PAT) surged 34.18% to RM4.66 million, compared to RM3.47 million in 2QFY2023, marking its highest quarterly profit since 4QFY2021. This substantial growth is attributed to strong performances in the ELP and trading divisions.
Despite a 4.86% decline in revenue, which fell to RM33.15 million from RM42.80 million a year earlier due to delays in solar PV project executions, Pekat achieved impressive results. The ELP division saw a revenue increase of 47.14% to RM11.56 million, while the trading division's revenue grew by 34.75% to RM11.86 million. Quarterly earnings per share (EPS) rose to 0.72 sen from 0.54 sen a year ago.
For the six months ended 30 June 2024 (1HFY2024), Pekat's PAT increased by 26.81% year-on-year, reaching RM8.46 million from RM6.67 million in 1H2023. EPS for this period was 1.31 sen, up from 1.03 sen the previous year. The solar PV division contributed 61.13% of group revenue at RM69.81 million, followed by the trading division at 20.85% or RM23.81 million, and the ELP division at 18.02% or RM20.58 million.
CEO Tai Yee Chee noted that the robust performance of the ELP division reflects heightened activity levels, particularly in the booming data centre market. He highlighted the recent ELP project win for a data centre facility as a testament to the division's promising outlook. "We are confident in the division's prospects and will continue to focus on growing our order book in this sector," said Tai.
The solar PV segment remains active, with ongoing projects including a 29.99MWac solar PV power plant under the Corporate Green Power Programme (CGPP) and participation in the recent fifth large-scale solar (LSS5) awards totalling 2,000MW. Tai expressed optimism about the solar market's vibrancy and supportive policies, such as rebates for domestic customers, which are expected to sustain demand.
Pekat will continue to focus on replenishing its order book and managing operational efficiency to maintain competitiveness in the evolving market landscape, according to Tai.