PETALING JAYA (Nov 21): Car upholstery maker Pecca Group Bhd (KL:PECCA) is negotiating to expand its replacement equipment manufacturing business to more foreign markets, including Australia, the Middle East, and Europe.
The expansions may involve joint ventures, partnerships, or acquisitions, Pecca chief executive officer Foo Ken Nee told reporters on Thursday. The company is seeking to diversify its revenue base and reduce reliance on its mainstay original equipment manufacturing business, he noted.
“You’ll probably hear more soon about our progress in Australia and the US, with announcements expected early next year,” Foo said after the company’s annual general meeting. “Discussions are also underway for the Middle East and Europe, where we’ve identified potential partners.”
Pecca’s expansion abroad comes as rising car sales propelled the company’s profits to record highs. New vehicle sales could potentially break last year’s record-high and hit 800,000 units this year, driven by robust demand for national cars, according to the Malaysian Automotive Association.
The company serves Perodua, the country’s biggest carmaker by volume, as well as Japanese brands Toyota, Nissan and Mitsubishi in Malaysia, that account for 94% of its annual revenue.
Pecca seeks orders from Honda, luxury brands
“We currently don’t serve Honda or luxury brands,” Foo said. “Our goal is to secure partnerships with these brands for their new product cycles, supplying seat variants and other components.”
For the year ended June 30, 2024 (FY2024), the company reported a 55% surge in net profit to RM55 million, on record revenue of RM242.5 million. First-quarter results for FY2025, set to be released later on Thursday, are expected to maintain the trend, Foo said.
As the sole supplier of leather upholstery to Perodua, Foo said Pecca is also gearing up to support the national car company’s ambition to roll out Malaysia’s first electric vehicle (EV) by the end of 2025.
“We are already in active negotiations and discussions in support of [Perodua’s] EV launch next year, and we are very excited to ensure a successful EV launch,” Foo said, though he noted that Pecca has yet to receive orders from Perodua.
Shares of Pecca slipped two sen or 1.46% at RM1.35 as at noon market break on Thursday, valuing the company at RM1.02 billion. Year-to-date, shares in the company were up 3.85%.