KUALA LUMPUR: Electrical engineering service provider, HE Group Berhad (“HE Group” or the “Company”) has announced its financial results for the first quarter ended 31 March 2025 (“1QFY25”).
During the quarter under review, HE Group registered a 92.6% year-on-year (“YoY”) growth in profit after tax (“PAT”), rising to RM2.9 million in 1QFY25, compared to RM1.5 million in the previous year’s corresponding quarter (“1QFY24”). This growth was driven by a higher-margin project mix, which resulted in an expanded PAT margin of 9.2%, up from 2.3% in the previous year’s corresponding quarter. Despite a softer revenue of RM31.5 million in 1QFY25 (1QFY24: RM64.8 million), primarily due to few projects that were nearing completion, the Company’s strong profitability performance highlights its ability to adapt and deliver positive results.
The Power Distribution System segment was the key contributor to HE Group’s 1QFY25 revenue, accounting for RM14.5 million (1QFY24: RM45.4 million), or 45.9% of total revenue. This was followed by the Electrical Equipment Hook-Up and Retrofitting division, which generated RM11.3 million, representing 35.7% of revenue, marking a twofold increase from RM4.4 million in 1QFY24. The remaining portion was contributed by the Other Building Systems and Works business, which recorded RM5.8 million (1QFY24: RM15.0 million), or 18.4%.
Managing Director of HE Group, Mr. Haw Chee Seng said, “When we entered the new financial year, we faced a volatile operating environment shaped by global factors such as protectionist trade policies, trade tensions and economic uncertainties. Nevertheless, our growing PAT and expanding PAT margins reflect HE Group’s resilience and our ability to adapt effectively, ensuring sustained profitability in a complex market landscape.”
“Looking ahead, HE Group is well-positioned to benefit from Malaysia’s rise as a digital infrastructure hub, which is driving significant investments in data centres. With the increasing adoption of cloud computing and artificial intelligence (“AI”), the country’s data centre capacity is expected to double by 2025. Moreover, the electrical and electronics (“E&E”) sector, including the semiconductor industry, is experiencing growth driven by the rapid adoption of technologies like the Internet of Things and AI, coupled with a more stable global trade environment. These factors are set to encourage further expansion of multinational semiconductor operations in the region, aligning with HE Group’s proven track record in delivering electrical infrastructure for high-tech facilities.”
“Additionally, the renewable energy sector is gaining momentum as Malaysia progresses towards a low-carbon economy. The growing importance of Battery Energy Storage Systems (“BESS”) to support renewable energy sources presents an opportunity for HE Group. With government initiatives accelerating BESS deployment, we are actively exploring large-scale project opportunities where HE Group can leverage its expertise and contribute meaningfully to the country’s energy transition.”
“Barring major disruptions, we expect to sustain our positive momentum. However, we remain mindful of macroeconomic uncertainties that could influence project timelines and investment decisions. In navigating this, HE Group will continue to focus on disciplined cost control, optimising operational efficiency, and strengthening financial resilience to manage risks effectively.”
HE Group maintains a strong net cash position, with total cash and cash equivalents of RM53.5 million far exceeding total borrowings of RM1.1 million as at 31 March 2025.
Moving forward, HE Group remains focused on delivering value to its stakeholders while navigating the challenges of the global operating environment. With a strong track record and a strategic focus on high-growth sectors, the Company is well positioned to capture emerging opportunities and improve its overall performance.
