KUALA LUMPUR (Feb 25): Pekat Group Bhd (KL:PEKAT) reported its highest-ever quarterly profit and revenue for the fourth quarter ended Dec 31, 2024 (4QFY2024), concluding the year with the highest annual earnings and revenue on record.

In 4QFY2024, net profit more than doubled to RM8.03 million from RM3.52 million a year ago, while quarterly revenue increased 61.7% to RM94.26 million compared with RM58.29 million in 4QFY2023, according to a filing with Bursa Malaysia on Tuesday.

Pekat specialises in the installation of solar photovoltaic (PV) systems, and provides earth and lightning protection (ELP) systems.

Its solar division was the primary contributor of revenue growth, with an increase of RM16 million, or 41.4%, attributed to higher project execution across the commercial, industrial, and residential segments, Pekat said.

Additionally, the group's trading and ELP divisions recorded significant revenue increases of 70% and 36.9% respectively, compared to 4QFY2023.

"The ELP division benefited from increased project execution, particularly for data centre jobs, while the trading division experienced stronger customer demand," Pekat said. 

Its newly acquired power distribution equipment (PDE) division, Apex Power Industry Sdn Bhd, contributed RM9.85 million in revenue for 4QFY2024.

No dividend was declared for the quarter.

For FY2024, the group’s net profit increased 65.5% to RM22.76 million from RM13.75 million a year ago, while total revenue was up 28% to RM291.09 million from RM227.46 million.

In a separate statement, chief executive officer Tai Yee Chee said under Apex Power’s subsidiary EPE Switchgear Sdn Bhd, Pekat is able to expand along the grid infrastructure and electricity distribution system segments. 

“The integration of the PDE business into existing operations will allow the group to offer a more comprehensive range of products and services, and enable cross-selling across a wider range of customers,” he said.

Pekat is also targeting the LSS5+ bidding round, which will award 2,000MW capacity, followed by LSS6, whose bidding is expected to be in the second quarter of 2025, along with continued investments in data centre projects in the country, Tai said.

“Global energy megatrends are providing strong tailwinds for the solar energy industry,” Tai added. “As US tariffs on China-made solar panels weigh on global solar PV prices, this improves cost-competitiveness for solar project developers and contractors in the region, while rising electrification in Malaysia is expected to lift grid-connected electricity prices higher and making solar PV installations increasingly attractive,” Tai said. 

The group is developing two 29.99 MWac solar power plants under the Corporate Green Power Programme. One is an internal investment, expected to boost recurring income upon completion by end-2025.  The other, a recently secured engineering, procurement, construction and commissioning (EPCC) project, is expected to positively impact the group’s financial performance for FY2025.

Pekat shares were up two sen or 1.8% at RM1.15 at the time of writing on Tuesday, valuing the company at RM741.71 million. Year to date, the stock has gained 16.2%. 

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