KUALA LUMPUR: HE Group Berhad, a leading electrical engineering service provider, has released its second quarter (“2QFY24”) and six months financial results for the fiscal year ending December 31, 2024 (“FY24”). This marks the fourth interim financial report in compliance with Bursa Malaysia Securities Berhad’s ACE Market Listing Requirements. There are no comparative figures for the previous corresponding quarter as no interim financial report was prepared.
In 2QFY24, HE Group demonstrated robust financial performance with sustained profitability and margin expansion. Despite a decrease in revenue to RM48.9 million from RM64.8 million in the preceding quarter (“1QFY24”) due to reduced work deliveries in its core segment, the company achieved a profit before tax (“PBT”) of RM5.6 million, compared to an adjusted PBT of RM5.5 million in 1QFY24 (after adjusting for listing expenses of RM2.7 million). The PBT margin for 2QFY24 improved to 11.4%, up from the adjusted 8.4% in the previous quarter, driven by a favourable project mix.
The Power Distribution System segment remained the primary revenue contributor, generating RM31.9 million or 65.2% of total revenue in 2QFY24, followed by the Electrical Equipment Hook-Up and Retrofitting segment contributing RM10.5 million, accounting for 21.5% of revenue.
For the six months ended June 30, 2024 (“1HFY24”), HE Group reported a PBT of RM8.4 million with revenue totalling RM113.7 million, resulting in a PBT margin of 7.4%.
Mr. Haw Chee Seng, Managing Director of HE Group, commented, “We are pleased to announce another strong financial performance in 2QFY24. Building on earlier momentum this year, we are confident in maintaining this trajectory for the remainder of the fiscal year. Encouragingly, we are observing increased market activity with a growing pipeline of potential projects.”
The Malaysian economy continued its robust growth in the second quarter of 2024, expanding by 5.9%, driven by strong domestic demand bolstered by increased household spending and investment activity in sectors like manufacturing and services. Government initiatives such as the New Industrial Master Plan 2030, focusing on high-value industries like electrical and electronics, are expected to propel economic expansion further.
Mr. Haw added, “We are confident in our ability to execute our strategic plans, leveraging proceeds from our listing and a strong order book. Our focus remains on seizing growth opportunities within the energy transition sector, supported by governmental initiatives. Despite challenges in navigating a dynamic business environment, we remain optimistic about our prospects, aligned with the nation’s green agenda.”
