KUALA LUMPUR: Automotive upholstery maker Pecca Group Bhd (PGB) posted a net profit of RM13.39 million in the second quarter (Q2) ended December 31, 2023 (FY24), up 59 per cent from RM8.41 million in the same quarter last year.
Revenue rose 21 per cent year-on-year (YoY) to RM64.76 million in Q2 from RM53.48 million a year ago.
In Q2 FY24, PGB’s revenue was driven by demand for upholstery car seat covers, the sewing and supply of covers for car accessories, and wrapping and stitching services.
These subsegments each contributed about 90 per cent, 5 per cent and 3 per cent of PGB’s total revenue, respectively.
The original equipment manufacturer (OEM) upholstery car seat segment contributed about 89 per cent of the total revenue for car seat covers, while the replacement equipment manufacturer (REM) and pre-delivery inspection (PDI) segments contributed about 3 per cent and 8 per cent, respectively.
PGB’s net profit margin for Q2 was 20.7 per cent, a 32 per cent increase from Q2 FY23.
PGB’s profitability improved due to enhanced cost efficiency, with the company’s production facilities benefiting from better economies of scale.
Chief executive officer Foo Ken Nee said the Q2 earnings reflect the company’s commitment to sustained business growth.
He said this marks the sixth consecutive quarter where PGB set a new net profit record.
“Our cash position also rose to RM138.96 million as of Q2 FY24, up 24.9 per cent from RM111.23 million in FY23.
“Our robust financial strength will give us the firepower to accelerate our diversification into new markets,” he said in a statement.
Foo said the outlook for automotive total industry volume (TIV) in Malaysia continues to be resilient.
“We are well-positioned to capitalise on this momentum, with our focus on productivity, cost efficiency and optimal procurement strategy,” he said.
Executive director Teoh Zi Yi said that moving forward, PGB is banking on its aviation division to unlock the next growth phase.
“We will continue to work toward building a strong and stable customer base in the aviation industry, tapping the capabilities and networks of our industry partners.
“Last week, we formalised a strategic partnership with Global Component Asia Sdn Bhd (GCA) at the Singapore Airshow 2024.
“This partnership will allow PGB’s subsidiary Pecca Aviation Sdn Bhd to deliver aircraft interior solutions to GCA’s roster of prominent aviation customers, including airlines and maintenance, repair, and operations (MRO) players from key markets around the world.
“With the global air travel industry having staged a near-complete recovery, we believe we can achieve higher profit contributions from this business,” he said.
