KUALA LUMPUR: Electrical engineering service provider, HE Group Berhad (“HE Group” or the “Company”) has announced its third quarter (“3QFY24”) and nine months financial performance for the financial year ended 31 December 2024 (“9MFY24”).
HE Group continues to deliver growth in 9MFY24, reporting a 7.8% year-on-year (“YoY”) rise in revenue to RM172.6 million, from RM160.2 million in the previous corresponding period (“9MFY23”). This growth was primarily attributable to increased contributions from its Electrical Equipment Hook-Up and Retrofitting segment compared to 9MFY23. Also, the Company’s profit after tax (“PAT”) grew by 24.5% to RM10.3 million, compared to RM8.3 million in 9MFY23, resulting in an expanded PAT margin of 6.0% in 9MFY24, up from 5.2% in 9MFY23.
HE Group’s overall revenue was primarily contributed by the Power Distribution System segment, generating RM102.1 million, or 59.1% to the overall revenue in 9MFY24 (9MFY23: RM104.6 million). This was followed by the Electrical Equipment Hook-Up and Retrofitting segment which grew substantially, expanding more than fivefold to RM42.3 million, representing 24.5% of total revenue in 9MFY24, compared to RM7.4 million in 9MFY23. Revenue from the Other Building Systems and Works division amounted to RM27.3 million (9MFY23: RM47.7 million), contributing 15.8% to the total revenue. On the other hand, the Trading of Electrical Products contributed RM0.9 million in 9MFY24 (9MFY23: RM0.4 million), representing 0.5% of the total revenue.
In 3QFY24, HE Group recorded a softer revenue of RM58.9 million, from RM78.9 million recorded in the previous year’s corresponding quarter (“3QFY23”) due to lower work deliveries from the Power Distribution System, and Other Building Systems and Works segments. PAT increased by 31.0% YoY to RM4.6 million in 3QFY24, from RM3.5 million in 3QFY23. This resulted in a hike in PAT margin to 7.8%, compared to 4.5% in 3QFY23.
Managing Director of HE Group, Mr. Haw Chee Seng said, “Our performance in 9MFY24 was underpinned by the new orders secured throughout the period, valued approximately at RM94.3 million. As at 31 October 2024, our orderbook is valued at RM114.2 million. While we remain mindful of market conditions, our robust tender book and the increased market activity positions us favourably for continued growth.”
“In turn, we strive to secure new contracts and expand our orderbook by capitalising on the strengthening Malaysian economy, supported by the robust performance in the services, manufacturing, and construction sectors. The government’s strategic initiatives, such as the New Industrial Master Plan 2030, New Investment Policy and the National Energy Transition Roadmap, are expected to continue stimulating economic activity and attract increased investments to key industries.”
“By leveraging our strong industry expertise and experienced team, we are confident in our ability to navigate future challenges and capitalise on emerging opportunities. We are dedicated to deliver exceptional value to our stakeholders and drive sustainable long-term growth for HE Group.”
The Company continues to deliver growth with a recorded 20.5% quarter-on-quarter (“QoQ”) increase in revenue to RM58.9 million in 3QFY24, from RM48.9 million in 2QFY24 due to higher work deliveries for the Electrical Equipment Hook-Up and Retrofitting segment. HE Group’s profitability also expanded by 9.9% QoQ to RM4.6 million in 3QFY24, compared to RM4.2 million in 2QFY24 on the back of a higher revenue base.
