Solar District Cooling Group Bhd's (SDCG) strong execution in the provision and maintenance of Building Management Systems (BMS), solar thermal systems and energy-saving services projects has enable the group to achieve a 16.6% increase in revenue to RM5.41 million for its third quarter ended Sept 30, 2024 (3Q24), compared to RM4.64 million recorded in 2Q24.

The Group's gross profit for the current quarter increased by RM0.79 million or 29.05% to RM3.49 million compared to 2Q24 of RM2.71 million mainly due to higher revenue recognised from the progress billing for the completed project by the BMS segment.

The gross profit margins improved quarter-on-quarter to 64.6% in 3Q24 from 58.3% in 2Q24, reflecting better project contributions and cost efficiencies.

Despite the revenue increase, SDCG recorded a loss before tax (LBT) of RM0.51 million in 3Q24 compared to a profit before tax (PBT) of RM1.3 million in 2Q24. The decline was primarily due to one-off IPO listing expenses of RM2.3 million incurred during the quarter. After adjusting for this one-off IPO listing expenses, SDCG would have reported an adjusted PBT of RM1.43 million, an increase of 10% compared to 2Q24.

For the nine months ended Sept 30, 2024 (9M24), SDCG achieved a cumulative revenue of RM16.08 million. PBT for the same period stood at RM2.66 million, underpinned by the group's diversified portfolio, including its flagship BMS, solar thermal systems and maintenance of other systems and equipment.

Noting the positive financial results, SDCG has declared a single-tier interim dividend of one sen per share for the financial year ending Dec 31, 2024.

SDCG's share price closed at 54 sen on Nov 28, 2024, with a market capitalisation of RM228.9 million.