KUALA LUMPUR (Aug 22): Pekat Group Bhd’s net profit more than tripled to RM3.48 million in the second quarter ended June 30, 2023 (2QFY2023), from RM1.07 million a year earlier, as revenue surged to a record high amid the execution of a large scale solar project in the Batang Padang district in Perak.

Earnings per share improved to 0.54 sen from 0.17 sen, the solar photovoltaic (PV) and earthing and lightning protection (ELP) specialist’s bourse filing showed. 

Quarterly revenue rose 40.83% to RM59.45 million, from RM42.22 million in 2QFY2022.

Pekat declared a dividend of one sen per share, payable on Sept 21.

For the first six months of FY2023, the group's net profit increased 21.18% to RM6.64 million, from RM5.47 million last year, as revenue grew 21.16% to RM106.27 million from RM87.71 million.

Looking forward, the group said it is well-positioned to improve its operational efficiency and grow its order book despite anticipating challenging market conditions to persist.

The group said its ELP division is poised to capitalise on additional opportunities as the Energy Commission of Malaysia has implemented more stringent safety standards for lightning protection systems.

“This new development necessitates the installation of ELP systems in newly constructed buildings and mandates existing buildings to evaluate their compliance with safety standards and make necessary improvements if required. These measures present a promising avenue for the group to expand its business and contribute to ensuring enhanced safety measures across various buildings in Malaysia,” it added. 

Pekat also said the renewable energy export market would stimulate the local renewable energy generation capacity installation, presenting favourable opportunities for domestic players in the industry.

The anticipation came after the Ministry of Natural Resources, Environment and Climate Change introduced the strategic development and cross-border trade policy for renewable energy on May 9. This policy aims to facilitate the expansion of renewable energy development and lift the existing ban on the export of renewable energy.

Meanwhile, the group expects a higher adoption of solar energy by more commercial and industrial users following the tariff hike, which will affect medium voltage and high voltage commercial and industrial users.

Pekat’s share price closed down one sen or 1.96% to 50 sen on Tuesday, bringing the group a market capitalisation of RM322 million.

The stock debuted on the ACE Market on June 23, 2021 at 85 sen, sharply higher than its initial public offering price of 32 sen.