KUALA LUMPUR (Dec 8): Pecca Group Bhd, which has posted record profits and revenue for the past three financial years, is aiming to generate at least 15% of its revenue from the aviation business over the next five years.
In a statement on Friday, Pecca managing director Datuk Kelvin Teoh Hwa Cheng said the group is building a strong and stable customer base with the help of its 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.
“The aviation industry is a highly regulated one with stringent demands on quality, standards and turnaround time, which means we may be able to obtain higher profit margins from this business segment,” he said.
“Our current pipeline indicates an estimated doubling of revenue for Pecca’s aviation segment in FY2024 [the financial year ending June 30, 2024]. We expect to gain further momentum as we build awareness, branding, credibility, and confidence with aviation players,” he added.
The automotive upholstery maker kicked off its FY2024 with a record-breaking quarter driven by higher sales of upholstery car seat covers and improved operational efficiency. Net profit jumped 50% to RM13.05 million in the first quarter ended Sept 30, 2023 (1QFY2024) from RM8.35 million, as revenue rose 16.74% to RM64.05 million from RM54.86 million in 1QFY2023.
In 1QFY2024, the group achieved a milestone with its first purchase order to service a 180-seat, Europe-registered Airbus A320 passenger aircraft.
“The EASA certificate, which we received from the European Union Aviation Safety Agency [EASA] earlier this year, is opening many doors for us. 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,” Teoh added.
Pecca’s share price climbed from a low of 89 sen on Aug 21, to RM1.35 at the time of writing on Friday. The counter has risen over 62% since the start of the year.