Pekat targets strong growth in FY25 with power and solar expansion

KUALA LUMPUR: Pekat Group Bhd anticipates another promising year for the financial year ending 31 December 2025 (FY25), driven by a well-supported electricity infrastructure market and expanding opportunities in its newly ventured power distribution equipment (PDE) segment, according to chief executive officer Tai Yee Chee.

“With the array of power distribution solutions under Apex Power’s subsidiary EPE Switchgear Sdn Bhd, Pekat is able to expand along the grid infrastructure and electricity distribution system segments, which is ripe for substantial investments to support surging electricity demand,” Tai said in a statement.

“The group’s integration of the PDE business into Pekat’s existing operations, will allow it 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, which bidding is expected to be in 2Q2025; along with continued investments in data centre projects in the country, Tai added.

The group is developing two 29.99 MWac solar power plants under the Corporate Green Power Programme, with one as an internal investment set to enhance recurring income upon completion by end-2025.

The other, a recently secured EPCC project— is expected to positively impact the group’s financial performance for FY25, Tai noted.

In the fourth quarter ended 31 December, Pekat’s net profit more than doubled to RM7.35 mil from RM3.5 mil a year ago, translating into an earnings per share of 1.14 sen compared to 0.55 sen previously.

Revenue for the quarter jumped 61.7% to RM94.2mil from RM58.3mil a year ago.

For FY24, it posted a 60.5% jump in net profit to RM22mil, on strong growth momentum in key segments, and maiden contributions from 60%-owned PDE division Apex Power Industry Sdn Bhd beginning in the fourth quarter.

Full-year revenue rose 28.0% year-on-year to RM291.1mil, from RM227.46mil in FY23, driven by Apex Power’s contribution of RM9.9mil in revenue or 10.5% of group total in the three months ended December.

Pekat said the FY24 performance was boosted by its second consecutive quarter of record-high sales and profit in the October-December period.

As at Dec 31, the company’s cash and bank balances including fixed deposits grew to RM38.2mil while its retained earnings grew to RM115.3mil. Net assets per share of the company stood at 25 sen.