$PECCA / 5271 (PECCA GROUP BERHAD): Record-Breaking Revenue and Profit in FY24

1. FY24 & Q4 Highlights:

- Net profit for FY24 reached RM55 million, marking a 55.4% increase from FY23.
- Cash reserves grew by 38.2% from the end of FY23, totaling RM153.7 million.
- Maintained a strong dividend payout ratio above 40%, with 68.3% in FY24.
- Paid RM37.6 million in dividends, equating to 5 sen per share in FY24.
- Successfully completed its first purchase order (PO) for servicing a Europe-registered Airbus A320, in collaboration with Aero Cabin Solutions.

2. Earnings Performance:

- Revenue: Q4 revenue stood at RM55 million, a 1% increase QoQ, and FY24 revenue total RM242.4 million, up 10% YoY, driven by higher sales volume in the automotive segment.
- Profit After Tax (PAT): Q4 PAT was RM14.6 million, a 44% rise QoQ, while FY24 PAT reached RM55 million, a 55% increase YoY, primarily due to better production cost efficiency and higher revenue.
- Profit Margin: Improved from 16% in FY23 to 23% in FY24.
- Five-year net profit CAGR: 60.6%.

3. FY24 Revenue Breakdown:

- 80.6% of revenue came from the OEM segment, up from 75.2% in FY23. The sub-segment of car seat covers saw OEM revenue increase to 88.9%, up from 85.7% in FY23.
- Revenue from the top 5 car brands (Perodua, Toyota, Proton, Mitsubishi, and Nissan) increased slightly from 92.6% to 92.7%.

4. Outlook:

- Optimistic about Perodua's growth in the second half of 2024.
- Anticipates growth in the aviation segment in FY25.
- Exploring expansion into new markets, particularly luxury cars and electric vehicles (EVs).
- Pillar 1 OEM: Developing a new plant in the UMW High Value Manufacturing Park with a projected Capex of RM30 million for construction, RM10 million for new machinery, and RM10 million for working capital.
- Pillar 2 REM: Expanding into new export markets such as the US, Middle East, and Thailand, while pursuing partnerships with dealers or distributors in these regions.
- Pillar 3 Aviation: Following the successful Airbus A320 servicing, the company is targeting more opportunities in FY25.
- Pillar 4 Emerging Ventures: Synergies from recent acquisitions will help Pecca tap into Indonesia’s growing automotive market and secure new OEM contracts.