KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: HE Group Bhd’s net profit jumped 32.38% in Q3FY2024, fueled by strong contributions from higher-margin electrical equipment hook-up and retrofitting projects, despite a decline in revenue.
Q3FY2024 Financial Highlights
- Net Profit: Rose to RM4.62 million, up 32.38% YoY from RM3.49 million in 3QFY2023.
- Revenue: Declined 25.4% YoY to RM58.9 million (from RM78.9 million), mainly due to reduced project deliveries in the power distribution system and other building systems segments.
- No Dividend Declared for the quarter.
9MFY2024 Performance
- Net Profit: Increased 24.46% YoY to RM10.33 million, supported by better profit margins and a RM760,000 rise in other income.
- Cumulative Revenue: Up 7.79% YoY to RM172.63 million, primarily driven by the electrical equipment hook-up and retrofitting segment, which grew significantly to RM42.34 million (from RM7.41 million).
- Revenue Breakdown:
- Power Distribution System: RM102.1 million (59.1% of total revenue, down slightly from RM104.6 million).
- Other Building Systems: RM27.3 million (down from RM47.7 million).
- Trading of Electrical Products: Improved to RM900,000 (from RM400,000).
Orderbook and Outlook
- Orderbook Value: RM114.2 million as of October 31, 2024.
- New Orders Secured: Approximately RM94.3 million during 9MFY2024.
- Growth Strategy:
- Capitalize on Malaysia’s strengthening economy.
- Expand tender opportunities to secure new contracts.
Stock Performance
- Closing Price: 56 sen on Monday, up 2.78% (1.5 sen).
- Market Capitalization: RM244.2 million.
- IPO Price: The stock has doubled from its IPO price of 28 sen.
Management Commentary
Managing Director Haw Chee Seng highlighted the group’s robust orderbook and ongoing tender activity, positioning it well for sustained growth despite challenging market conditions.
Conclusion
HE Group’s ability to secure high-margin projects and maintain a strong orderbook has bolstered its financial performance, even amid revenue headwinds in certain segments. With a focus on Malaysia’s economic recovery, the group is well-positioned for future growth.
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