KUALA LUMPUR (Aug 22): Mega First Corp Bhd’s (KL:MFCB) net profit grew 18.9% to RM150.36 million in the second quarter ended June 30, 2024 (2QFY2024), from RM88.61 million a year earlier, underpinned by better performances from all its operating segments.

The company declared a dividend of 4.5 sen per share, up from four sen per share a year ago. Revenue for 2QFY2024 rose 1.9% to RM331.95 million from RM325.65 million.

In terms of segmental breakdown, revenue for the group’s renewable energy (RE) division increased 7.8% year-on-year (y-o-y) to RM156.2 million, primarily driven by a 7.5% rise in hydro energy sales to RM153.4 million and a 31.6% increase in solar energy sales to RM2.8 million. As a result, the segment’s profit went up by 4.4% to RM110.2 million

Its resources division saw revenue grow 8.2% y-o-y to RM56.7 million, underpinned by an increase in sales volume of lime products and currency gain effects. The segment’s profit more than doubled to RM12.6 million from RM5.8 million due to increased revenue, productivity gains and favourable sales mix.

Revenue for its packaging division grew 3.8% y-o-y to RM100.4 million, lifting the segment’s profit by 12.6% y-o-y to RM9.1 million.

For the first half of FY2024 (1HFY2024), its total net profit surged 26.2% to RM200.82 million from RM159.16 million a year earlier, while revenue fell 4.1% to RM645.43 million from RM673 million.

In terms of outlook, the group was bullish on its growth momentum in the second half of the year, in view of the commencement of operations of the new fifth turbine in its Don Sahong Power Plant since July 4, which saw its generation capacity increased from 260 mega-watt (MW) to 325 MW.

Mega First also said it anticipates its solar earnings will continue to grow in 2024, driven by the progressive installation of secured solar capacities. It expects an additional 16.1 MWp solar generation to start in 2024. Currently, its total solar generation capacity stood at 28.8 MWp.

As for its other divisions, the group expects robust demand for its resources division, while citing challenges for export sales and profit margin for its packaging division. Mega First also said it expects its oleochemical joint venture entity Edenor’s earnings to recover in the second half of 2024.

At Thursday's market close, shares in Mega First closed six sen or 1.3% lower to RM4.45, giving it a market capitalisation of RM4.39 billion. Year to date, the stock is up 22%, while its current indicative dividend yield stood at 1.85%.