KUALA LUMPUR (Nov 18): Electrical engineering services provider HE Group Bhd (KL:HEGROUP)  which was listed on the ACE Market in January, reported a 32.38% jump in its third quarter net profit, thanks to increased contribution from higher-margin projects, particularly in the electrical equipment hook-up and retrofitting segment.

Net profit for its third quarter ended Sept 30, 2024 (3QFY2024) rose to RM4.62 million from RM3.49 million in 3QY2023, though revenue fell 25.4% to RM58.9 million from RM78.9 million due to reduced project deliveries in the power distribution system and other building systems segments, its bourse filing on Monday showed. No dividend was declared

For the nine months ended Sept 30, 2024 (9MFY2024), HE Group reported a net profit of RM10.33 million, up 24.46% from RM8.3 million in 9MFY2023, which the group attributed to better profit margin and an increase in other income of RM760,000.

Cumulative revenue climbed 7.79% to RM172.63 million from RM160.16 million — mainly on higher contribution from its electrical equipment hook-up and retrofitting segment, where topline jumped to RM42.34 million from RM7.41 million.  

The power distribution system segment continued to be its top revenue-generating segment, contributing RM102.1 million, or 59.1% of the total revenue for 9MFY2024, down slightly from RM104.6 million in 9MFY2023. Its other building systems and works segment, meanwhile, saw revenue dropping to RM27.3 million from RM47.7 million, while the trading of electrical products segment, a smaller contributor, showed revenue improving to RM900,000 from RM400,000.

"Our performance in 9MFY24 was underpinned by the new orders secured throughout the period, valued approximately at RM94.3 million.  As at 31 October 2024, our orderbook is valued at RM114.2 million. While we remain mindful of market conditions, our robust tender book and the increased market activity positions us favourably for continued growth,” said
HE Group managing director Haw Chee Seng, adding the group is striving to secure new contracts by capitalising on Malaysia's strengthening economy.

HE Group’s share price closed 1.5 sen or 2.78% higher at 56 sen on Monday, valuing the company at RM244.2 million. The stock price has doubled from its initial public offering price of 28 sen.