Powering Ahead: Pekat Group Reports Stellar 169% Profit Surge in Q2 2025
Pekat Group Berhad, a prominent player in Malaysia’s renewable energy and electrical solutions landscape, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a period of explosive growth, strategic expansion, and a welcome return to shareholders. While the headline numbers are impressive, a deeper dive shows a company skillfully navigating both significant opportunities and emerging market shifts. Let’s break down the key highlights.
Core Data Highlights: A Quarter of Remarkable Growth
Pekat delivered a powerful performance, showcasing substantial growth when compared to the same quarter last year. The company’s top and bottom lines expanded significantly, reflecting strong execution across its business divisions.
In the second quarter of 2025, Pekat’s revenue soared by an incredible 124.5%, while its profit after tax skyrocketed by 169.1% compared to the previous year’s corresponding quarter.
This impressive performance is clearly reflected in the key financial metrics:
Q2 2025 (Current Quarter)
Revenue: RM 127.0 million
Profit Before Tax: RM 17.3 million
Net Profit: RM 12.5 million
Earnings per Share (EPS): 1.71 sen
Q2 2024 (Comparative Quarter)
Revenue: RM 56.6 million
Profit Before Tax: RM 6.6 million
Net Profit: RM 4.7 million
Earnings per Share (EPS): 0.72 sen
What’s Driving the Growth? A Look at Business Segments
The growth wasn’t concentrated in just one area. All of Pekat’s business divisions contributed positively, with the newly integrated Power Distribution Equipment (PDE) division making an immediate and substantial impact. The Solar Photovoltaics (PV) division remains the largest contributor, fueled by large-scale projects.
| Business Division | Q2 2025 Revenue (RM’000) | Q2 2024 Revenue (RM’000) | Growth (%) |
|---|---|---|---|
| Solar Photovoltaics (PV) | 62,603 | 33,150 | +88.8% |
| Power Distribution Equipment (PDE) | 34,827 | – | +100.0% |
| Earthing & Lightning Protection (ELP) | 14,871 | 11,558 | +28.7% |
| Trading | 14,691 | 11,858 | +23.9% |
The Solar PV division’s growth was primarily driven by higher contributions from a large-scale solar project under the Corporate Green Power Programme (CGPP). Meanwhile, the Earthing and Lightning Protection (ELP) and Trading divisions saw robust growth thanks to improved project execution and higher sales orders.
Risk and Prospect Analysis: Navigating Headwinds and Seizing Opportunities
While the year-on-year comparison is outstanding, the report also provides a candid look at the current market dynamics. Compared to the immediate preceding quarter (Q1 2025), revenue saw a 15.5% decline. This was mainly attributed to a slowdown in the residential solar segment following the expiry of the SolaRIS incentive scheme and the full allocation of NEM 3.0 quotas.
However, Pekat’s outlook remains bright, supported by strong industry tailwinds and strategic positioning:
- National Energy Goals: Malaysia’s commitment to achieving net-zero emissions by 2050 and the National Energy Transition Roadmap (NETR) provide a solid foundation for long-term growth in the renewable energy sector.
- Corporate Demand: The new Corporate Renewable Energy Supply Scheme (CRESS) is expected to boost demand for corporate power purchase agreements, creating significant opportunities for solar EPCC providers like Pekat.
- Large-Scale Projects: The Group is actively involved in two 29.99 MWac solar power plants under the CGPP. One is an internal investment set to generate recurring income, while the other is an EPCC contract that will contribute to earnings.
- Data Center Boom: With a proven track record, the ELP division is perfectly positioned to capitalize on the rising foreign direct investment in Malaysia’s data center industry.
- Synergistic Growth: The integration of the new PDE division is expected to enhance market reach and unlock operational synergies, driving future growth.
A Rewarding Gesture: Dividend Declared
In a show of confidence and commitment to its shareholders, the Board of Directors has declared a first interim dividend of 1.0 sen per ordinary share for the financial year ending 31 December 2025. This marks a positive development for investors, reflecting the company’s strong financial health and positive outlook.
Summary and Outlook
Pekat Group’s Q2 2025 results demonstrate a company firing on all cylinders. The remarkable year-on-year growth, successful diversification through the new PDE division, and a clear strategy aligned with national energy goals paint a very positive picture. While the short-term slowdown in the residential solar market presents a challenge, the company’s focus on large-scale corporate projects and the data center sector provides a robust pathway for sustained growth. The dividend declaration further underscores the management’s confidence in the group’s future prospects.
- Explosive Growth: The triple-digit increase in profit and strong revenue growth highlight excellent operational performance.
- Strategic Diversification: The immediate and significant contribution from the new Power Distribution Equipment division validates the group’s acquisition strategy.
- Strong Industry Tailwinds: Pekat is well-positioned to benefit from Malaysia’s green energy transition and the influx of investment into high-tech industries like data centers.
- Shareholder Returns: The declaration of a dividend is a clear signal of financial strength and a commitment to rewarding investors.
- Considerations: Investors should note the quarter-on-quarter revenue dip caused by the residential solar market slowdown and the increase in finance costs related to strategic expansion.
Final Thoughts
From a professional standpoint, Pekat Group’s latest report paints a picture of a company in a dynamic growth phase. The successful integration of the new Power Distribution Equipment division and its immediate contribution to the top line is particularly noteworthy. While the dip in the residential solar segment quarter-on-quarter warrants attention, the strategic pivot towards large-scale projects and industrial solutions like data centers appears to be a well-calculated move to capture more stable, long-term revenue streams.
What are your thoughts on Pekat’s strategy to focus on large-scale projects amidst the changing residential solar landscape? Share your insights in the comments below!
