Pecca Group Berhad

$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.

PECCA集团 2024 财年末季净利再写新高
• 全年净利较 2023 财年增 55.4% 至 5500 万令吉
• 2016 年上市以来最高年度净利
$PECCA / 5271 (PECCA GROUP BERHAD) #RecordHigh #Q4FY24

PECCA GROUP CATAT SATU LAGI REKOD UNTUNG BERSIH PADA S4 TK2024
• Untung bersih setahun penuh meningkat kepada RM55.0 juta, meningkat 55.4% daripada TK2023
• Untung bersih setahun penuh terbaik sejak IPO pada 2016
$PECCA / 5271 (PECCA GROUP BERHAD) #RecordHigh #Q4FY24

PECCA GROUP ACHIEVES ANOTHER RECORD NET PROFIT IN Q4 FY2024
• Full-year net profit rises to RM55.0 million, up 55.4% from FY2023
• Best annual net profit recorded since IPO in 2016
$PECCA / 5271 (PECCA GROUP BERHAD) #RecordHigh #Q4FY24

Continuing the list here (part 3):

$PECCA / 5271 (PECCA GROUP BERHAD) (MC: RM917.4Mil) - Dividend payout policy of 40%
$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) (MC: RM984mil) - Dividend policy of paying up to 30% of PATMI
$AMWAY / 6351 (AMWAY (MALAYSIA) HOLDINGS BERHAD) (MC: RM1.15bil) - Dividend payout policy of not less than 80% of the annual net earnings
$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) (MC: RM1.16bil) - Dividend payout approx. 50% of PAT
$VSTECS / 5162 (VSTECS BERHAD) (MC: RM1.2bil) – Dividend payout of minimum 30% of net profit

MC: Approximate Market Cap

**Note: the dividend payout is subjected to cash flow, valuation gain/loss of properties, etc. (for details please read their respective annual reports)

Immediate Announcement on Shares Buy Back

Immediate Announcement on Shares Buy Back

Pecca Group Bhd affirmed a crossing of the 200-day simple moving average (SMA) yesterday as it extended its recovery for a fourth straight day.

Automotive Production & Sales Data (May 2024)

Looking at May 2024 figures, the total industry volume (TIV) / Sales for Jan-May 2024 period was 8% higher than the similar corresponding period in 2023, whereas production also continues to be robust at 12% higher vs 2023 same period. This increase is mainly driven by the Passenger Vehicle (PV) segment, as compared to Commercial Vehicle (CV) where both production and sales has declined.

For the first 5 months of 2024, total production has risen 12% to 341k units (vs 2023 at 304k). Breaking down the YTD numbers, PV continues to have strong growth at 13% increase of 323k units produced, whereas there’s a decline of -5% for production of CV.

For the first 5 months of 2024, total sales have risen 8% to 328.9k units (vs 2023 at 303.5k). Breaking down the YTD numbers, PV continues to have growth at 11% increase of 301k units in sales, whereas there’s a decline of -15% for sales of CV.

Based on news citing Malaysian Automotive Association (MAA), local car sales in June’24 are expected to remain at the same level as in May’24.

Besides the usual $BAUTO / 5248 (BERMAZ AUTO BERHAD), DRBHCOM, $MBMR / 5983 (MBM RESOURCES BHD), UMW, car parts manufacturer also would benefit from this continuous increase in vehicle sales, such as $FEYTECH / 5322 (FEYTECH HOLDINGS BERHAD) $PECCA / 5271 (PECCA GROUP BERHAD) APM to name a few, and Spare Parts Supplier such as $NHFATT / 7060 (NEW HOONG FATT HOLDINGS BERHAD).

I must admit that I’ve underestimated how much Malaysians like buying new cars… there are really A LOT of cars on the road right now. Makes me wonder how many actually withdrew from their EPF 3 just to buy a new car.

Previous discussion on Feb 2024 Automotive Sales: https://cutt.ly/IesXY43h

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - DATIN SAM YIN THING

Changes in Director's Interest (Section 219 of CA 2016) - DATIN SAM YIN THING

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

PECCA - Notice of Book Closure

Third Interim Dividend

KUALA LUMPUR: Pecca Group Bhd, which saw its net profit jump 64% in the third quarter ended March 31 (3Q24), aims to sustain its growth momentum in the upcoming quarters.

PECCA集团在2024财年仅三个季度内超越了2023财年的创纪录净利润，前景看好
集团净利连续第7个季度创历史新高
$PECCA / 5271 (PECCA GROUP BERHAD) #Q3FY24 #Record #Netprofit

PECCA BERJAYA ATASI REKOD KEUNTUNGAN BERSIH FY2023 DALAM HANYA 3 SUKU FY2024, PROSPEK KE HADAPAN TERUS CERAH
Kumpulan Meraih Rekod Keuntungan Bersih Suku Tahunan Yang Ke-7 Secara Berturut-turut
$PECCA / 5271 (PECCA GROUP BERHAD) #Q3FY24 #Record #Netprofit

PECCA OUTPERFORMED FY2023 RECORD NET PROFIT IN JUST 3 QUARTERS OF FY2024, SEES STRONG OUTLOOK AHEAD
Group achieves 7th consecutive quarterly record net profit
$PECCA / 5271 (PECCA GROUP BERHAD) #Q3FY24 #Record #Netprofit

OTHERSPECCA GROUP BERHAD ("PECCA" OR THE "COMPANY")
- THIRD INTERIM SINGLE-TIER DIVIDEND OF 1.50 SEN PER ORDINARY SHARE FOR THE FINANCIAL YEAR ENDING 30 JUNE 2024

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

MEMORANDUM OF UNDERSTANDINGPECCA GROUP BERHAD ("PECCA" OR "COMPANY")
- Memorandum of Understanding between PECCA and Malaysia Automotive Robotics and IoT Institute ("MARii")

$FEYTECH / 5322 (FEYTECH HOLDINGS BERHAD): A Company Poised to Gain from the Increase in Malaysians' Income

Background
📌 Primarily engaged in the manufacturing of automotive covers and automotive seats.
📌 The automotive covers segment includes not only automotive seat covers but also interior part covers such as door trims, steering wheels, handbrake handles, and consoles.
📌 In FY23, the highest revenue contribution came from automotive covers (45.3%), followed by automotive seats (38.4%), and finally interior part covers (16.3%).

Customer Distribution
📌 The majority of revenue comes from OEMs (93%), mainly from KIA and MAZDA. These two clients contributed 39.7% and 22.5% of annual revenue in FY23, respectively.
📌 The remaining portion comes from REMs (4.3%) and PDI (2.7%).

Latest Performance and Outlook
📌 FEYTECH has performed well in recent years, with rapid growth attributed to the introduction of a new business line in FY21, namely automotive seat manufacturing. Production volumes surged in FY23, from 1,002 seats in FY22 to 8,451 seats in FY23, primarily due to contracts with KIA and MAZDA.
📌 Additionally, FEYTECH's margins are commendable, with a gross profit margin of 38.3% (consistently above 35% for four consecutive fiscal years) and a profit margin of 20.8% (consistently above 20% for four consecutive fiscal years).
📌 Apart from KIA and MAZDA, FEYTECH has secured a contract for automotive seat manufacturing with multinational automotive company, Stellantis Gurun (Malaysia) Sdn Bhd, which encompasses brands such as Citroen, Kia, and Peugeot.
📌 Furthermore, FEYTECH has collaborations with new multinational automotive OEM companies. These new contracts are expected to commence production in June 2024, with further details (order amounts) to be updated in subsequent quarterly reports.

Financial Condition
📌 From the company's cash flow statement, it is evident that the company recorded an additional RM 11 million in borrowings in FY23 compared to FY22, yet it remains in a net cash position.
📌 Despite capital expenditures of RM 18.55 million and total dividend payments of RM 15.48 million in FY23, FEYTECH recorded a net cash inflow of RM 31.5 million.
📌 FEYTECH intends to distribute 40% of after-tax profits as dividends in the future. Prior to implementing the dividend payout policy, FEYTECH maintained a consistently high dividend payout ratio: FY20: 65.7%; FY21: 51.4%; FY22: 54.3%; FY23: 49.5%.

Future Development
📌 Construction of Kulim Plant 2 for expanding automotive seat manufacturing operations.
📌 Acquisition of land in Tanjong Malim Automotive High-Tech Valley for expanding automotive seat manufacturing operations.
📌 Establishment of a new company office with manufacturing facilities and warehouses, potentially consolidating all operations from PJ Hub to the new company and providing manufacturing space for automotive leather covers.

Competitors
📌 In terms of revenue from automotive leather covers, FEYTECH is currently the third-largest automotive leather cover manufacturer, with the highest being $PECCA / 5271 (PECCA GROUP BERHAD).
📌 According to PROVIDENCE data, FEYTECH's market share in 2023 based on automotive leather cover revenue is 25.9%.
📌 Unlike PECCA, which focuses on manufacturing automotive leather covers in multiple sectors (such as automotive and aviation), FEYTECH solely focuses on the automotive industry. However, FEYTECH can provide a one-stop solution for seats, from leather cover production to complete seat manufacturing, setting it apart from competitors.
📌 According to PROVIDENCE data, although FEYTECH's contribution to revenue in automotive seat production is not the highest, its gross profit margin is the highest among peers (33.6%).

Summary
📌 FEYTECH has managed its operations quite well. A company's ability to achieve good performance is often attributed to effective leadership. Connie Go, the non-independent executive director and CEO of FEYTECH was awarded the 2022/2023 Achievements and Leadership of Women in Business Award by female entrepreneurs has shows her ability in leading the company. Based on the IPO price of RM 0.80, FEYTECH's P/E Ratio is approximately 15 times.

MEMORANDUM OF UNDERSTANDINGPECCA GROUP BERHAD ("PECCA" OR "COMPANY")
MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN PECCA AVIATION SERVICES SDN BHD AND AERO CABIN SOLUTIONS SAS

Changes in Director's Interest (Section 219 of CA 2016) - MR TEOH ZI YI

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

PECCA集团 2024 财年次季净利创历史新高
集团净利连续第6个季度创历史新高

$PECCA / 5271 (PECCA GROUP BERHAD) #financialresult #FY2024

PECCA GROUP REPORTS HIGHEST-EVER QUARTERLY NET PROFIT IN Q2 FY2024
Group achieves sixth consecutive quarterly net profit record

$PECCA / 5271 (PECCA GROUP BERHAD) #financialresult #FY2024

PECCA - Notice of Book Closure

KUALA LUMPUR: Pecca Group Bhd is banking on its aviation division to unlock its next phase of growth, according to executive director Teoh Zi Yi.

Second Interim Dividend