KUALA LUMPUR: Electrical engineering service provider HE Group Bhd (HGB) posted a net profit of RM4.62 million for the third quarter (Q3) ended December 31, 2024 (FY24), an increase of 32.4% from RM3.49 million posted in Q3 FY23.
Revenue for the quarter declined 25.3% to RM58.89 million from RM78.90 million posted in Q3 FY23 due to lower work deliveries from the power distribution system, other building systems and works segments.
For the nine month (9M) of FY24, HGB posted a 7.8% year-on-year (YoY) rise in revenue to RM172.6 million, from RM160.2 million in 9M FY23.
This growth was primarily attributable to increased contributions from its electrical equipment hook-up and retrofitting segment.
The company’s net profit grew by 24.5% to RM10.3 million, compared to RM8.3 million in 9M FY23, resulting in an expanded PAT margin of 6.0% in 9M FY24, up from 5.2% in 9M FY23.
HGB’s overall revenue was primarily contributed by the power distribution system segment, generating RM102.1 million, or 59.1% to the overall revenue in 9M FY24 from RM104.6 million in the 9M of FY23.
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 9M FY24, compared to RM7.4 million in 9M FY23.
Revenue from the other building systems and works division amounted to RM27.3 million, contributing 15.8% to the revenue from RM47.7 million posted in the 9M of FY23.
The trading of electrical products contributed RM0.9 million in 9M FY24, representing 0.5% of the revenue for the 9M of FY24.
HGB managing director Haw Chee Seng said performance in the 9M FY24 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.
“By leveraging our strong industry expertise and experienced team, we are confident in our ability to navigate future challenges and capitalise on emerging opportunities,” he said.
