PRG post revenue of RM92.7 million for Q1 FY2023, energy efficiency division continues growth

KUALA LUMPUR: Diversified Main Market-listed PRG Holdings Berhad continued its profitable streak for the first quarter of FY2023 by recording a revenue of RM92.7 million and net profit of RM8.5 million in the quarter ended March 31, 2023 (Q12023).

In Q12023, PRG’s revenue increased by 55.8% to RM92.7 million, while the net profit was RM0.2 million lower as compared to RM8.7 million in the corresponding quarter of 2022.

The Management’s strategic decision to venture into the Energy Efficiency business paid off as well as a higher revenue recognition resulting from higher sales and construction progress from ongoing projects contributed to the positive results in Q12023.

The Property Development & Construction segment recorded revenue and profit before tax (PBT) of RM32.3 million and RM6.9 million respectively in Q12023 on the back of recognition of sales and construction progress from ongoing projects. However, the PBT was affected by lower profit margin attributed to the construction projects. The Manufacturing segment recorded a lower revenue of RM22.8 million in Q12023 with a PBT of RM1.2 million in Q12023. This was mainly due to the slowdown in global demand and rising inflation.

The newly ventured Energy Efficiency segment registered a revenue of RM37.4 million and PBT of RM4.5 million in Q12023, generated from energy solution contracts and maintenance service contracts.

As of to-date, the segment experienced a strong order by securing multiple projects amounting to a total contract value of approximately RM20 million.

These projects encompassed the upgrading of central control and monitoring system for an Integrated Development in Singapore, and a fit-out contract for a data centre. This accomplishment not only contributes positively to the revenue but also enhances the portfolio by adding prestigious clients into their portfolio.

The increasing awareness of Environment, Social and Governance related efforts is encouraging individuals, businesses, and governments to prioritize sustainable and socially responsible practices. This is expected to spur further growth in the Energy Efficiency segment in the foreseeable future.

These 3 segments contributed the majority of PRG’s revenue.

PRG Group executive vice-chairman Datuk Lua Choon Hann said,” The diversification into the Energy Efficiency segment has started to contribute to earnings, and we foresee this to be an important growth driver moving forward. More and more businesses are seeing the value and cost savings in our energy efficiency offering due to regional governments push towards establishing sustainable and green economies. This shift towards a green economy will have a significant positive impact on energy efficiency services moving forward. We will continue to work towards increasing our order books in the energy efficiency segment. With the property and manufacturing businesses stabilising while the energy efficiency business grows, the outlook for PRG is now looking significantly better. We continue to be on the lookout for new opportunities and are always mindful of creating more shareholder value. “

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