KUALA LUMPUR (Aug 19): Pekat Group Bhd (KL:PEKAT) posted record-high earnings in the second quarter ended June 30, 2026 (2QFY2026), as all of its business divisions generated stronger contributions.

Quarterly net profit expanded 28.8% to RM14.19 million from RM11.02 million a year earlier, according to the company’s filing with Bursa Malaysia. Earnings per share (EPS) increased to 2.01 sen from 1.71 sen per share a year earlier.

Revenue for the quarter under review climbed 38% to RM175.43 million from RM126.99 million a year earlier.

Pekat's solar photovoltaic division remained its primary top-line driver during the quarter, fuelled by steady progress in large-scale solar (LSS) engineering, procurement, construction and commissioning (EPCC) projects.

The group declared a first interim dividend of one sen per share for the financial year ending Dec 31, 2026 (FY2026), payable on Sept 25, 2026.

Looking ahead, Pekat anticipates a sustained period of growth underpinned by resilient industry fundamentals and momentum across the renewable energy and engineering sectors.

For the first six-month period ended June 30 (1HFY2026), cumulative net profit climbed 15.3% to RM26.63 million from RM23.08 million a year earlier.

Revenue for 1HFY2026 grew 23.8% year-on-year to RM343.32 million from RM277.3 million. Cumulative EPS rose to 3.77 sen per share from 3.58 sen per share a year earlier.

The group has four business divisions — the solar photovoltaics division contributed 54.6% of total revenue during the first half of the year, followed by power distribution equipment at 23.22%, earthing and lightning protection at 11.72%, and trading, which made up the remaining 10.48%.

Commenting on its prospects, Pekat said it expects to capture growth opportunities as the government's continued implementation of LSS programmes drives upcoming EPCC activities.

The solar photovoltaic specialist added that the integration of battery energy storage system requirements under the latest Large-Scale Solar 6 programme is expected to further encourage the adoption of solar-plus-storage solutions.

In addition, the group expects long-term growth in its solar photovoltaics division to be supported by opportunities under the Corporate Renewable Energy Supply Scheme, commercial and industrial rooftop systems and self-consumption initiatives.

This outlook is further bolstered by residential rollouts, including the Solar Accelerated Transition Action Programme and the Sustainable Rebate and Incentive Assistance Home programme.

Apart from solar, the group also expects its earthing and lightning protection and power distribution equipment divisions to benefit from rising electricity demand, driven by industrial expansion, particularly within Malaysia’s data centre sector.

“While the industry outlook remains encouraging, the group remains mindful of challenges arising from increasing competition, evolving regulatory requirements, project execution risks, supply chain dynamics and cost pressures,” it said.

“Pekat will continue to focus on disciplined project execution, prudent cost management, operational efficiency and strengthening its technical capabilities to capture emerging opportunities while maintaining financial resilience,” it added.

Shares in Pekat closed down seven sen or 3.8% to RM1.77, giving the group a market capitalisation of RM1.26 billion. The stock has rebounded 58% from the year’s low of RM1.12.