KUALA LUMPUR: Leading innovator in electrical solutions Powerwell Holdings Bhd (PHB), posted record-high earnings for the financial year ended March 31, 2024 (FY24), underscoring the company’s strategic success and operational excellence.
The company posted a net profit of RM19.71 million for the year, nearly tripling the previous year’s net earnings of RM6.81 million.
This marks the highest annual profit in the company’s history, showcasing a remarkable growth trajectory since its listing on the ACE market of Bursa Malaysia in 2020.
The company’s robust earnings growth was fueled by heightened profitability from several high-value projects, including notable ventures such as the semiconductor plant, solar power plant, and data centres.
These projects contributed to an increase in the gross profit margin, which rose to 29.7 per cent this year from 15.5 per cent in the previous period.
This profitability was further enhanced by reduced operating expenses, partly attributed to the write-off of intangible assets connected to the enterprise resource planning (ERP) system costs incurred in the prior year.
Meanwhile, the company’s revenue saw a slight dip to RM154.77 million from RM159.09 million, primarily attributed to a reduction in projects delivered within the current financial year.
This was notably influenced by the near completion of the semiconductor plant project, which had previously bolstered earnings.
Despite this downturn, PHB showcased its resilience by securing substantial revenue from several high-value projects.
These included a solar power plant project in Bangladesh and various data centres and commercial properties projects, which contributed significantly to the overall financial performance during this period.
For the fourth quarter (Q4) FY24, the company achieved a net profit of RM6.46 million, more than doubling the RM2.80 million from the same quarter last year.
The PBT for the quarter rose impressively to RM8.60 million from RM3.52 million, reflecting robust management and strategic execution.
PHB executive director Catherine Wong said the company’s landmark achievements this financial year demonstrated its strategic prowess and commitment to operational excellence.
“Our record-high profit after tax reflects our ability to manage high-value projects and adapt to market demands effectively.
“This success is a testament to the hard work and dedication of our team across all levels of the organisation.
“As we move forward, we remain focused on sustaining our growth trajectory and enhancing shareholder value through innovative solutions and prudent management practices,” she said.
Looking forward, PHB is optimally positioned to capitalise on the accelerated growth of the data centre market in Malaysia and Southeast Asia, a region experiencing exponential demand for cloud services and digital transformation.
With the Malaysian market projected to attract US$2.25 billion in investments by 2028, PHB’s recent acquisition of purchase orders worth RM57.61 million for a significant data centre project in Selangor highlights its strategic role in this expanding sector.
Additionally, PHB has declared and approved the payment of a third single-tier dividend of 1.0 sen per ordinary share in respect of FY24, payable on July 30, 2024, bringing the total dividend payout for FY24 to 3.0 sen per ordinary share.
“This distribution is part of our broader financial management strategy to reward our investors while maintaining ample resources to fund future growth initiatives,” Catherine said.
As of March 31, 2024, PHB has a robust cash balance of RM88.1 million, up significantly from RM49.7 million the previous year.
This allows the company in a strong position to pursue strategic growth opportunities through mergers and acquisitions and investment to enhance its technological capabilities and expand its market footprint.
“With a strong financial position, this allows PHB to be agile and responsive in a dynamic market environment including pursuing strategic acquisition opportunities to accelerate our growth,” Catherine added.
