BURSA Malaysia-listed electrical solutions innovator Powerwell Holdings Bhd has posted record-high earnings for its FY2024 ended March 31, 2024, underscoring the group’s strategic success and operational excellence.
The group’s net profit for its FY3/2024 skyrocketed to RM19.71 mil, nearly tripling the previous year’s RM6.81 mil.
This marks the highest annual profit in the company’s history, showcasing a remarkable growth trajectory since its listing on the ACE Market of Bursa Malaysia in 2020.
The robust earnings growth was fuelled by heightened profitability from several high-value projects, including notable ventures such as the semiconductor plant, solar power plant and data centres.
These projects contributed to an impressive increase in the gross profit margin which rose to 29.7% this year from 15.5% in the previous period.
This profitability was further enhanced by reduced operating expenses, partly attributed to the write-off of intangible assets connected to ERP (enterprise resource planning) system costs incurred in the prior year.
Meanwhile, the group’s revenue during the period under review saw a slight dip to RM154.77 mil (FY3/2023: RM159.09 mil), primarily due to a reduction in projects delivered within the current financial year. This was notably influenced by the near completion of the semiconductor plant project which had previously bolstered earnings.
Despite this downturn, the Powerwell nevertheless showcased its resilience by securing substantial revenue from several high-value projects. These included a solar power plant project in Bangladesh and various data centres and commercial properties projects which contributed significantly to the overall financial performance during this period.
Backed by robust management and strategic execution, the group was even able to achieve net earnings of RM6.46 mil for its final quarter ended March 31, 2024 which was more than doubling the RM2.80 mil for the 4Q FY3/2023 period.
“Our record-high profit after tax reflects our ability to manage high-value projects and adapt to market demands effectively,” commented Powerwell’s executive director Catherine Wong.
“This success is a testament to the hard work and dedication of our team across all levels of the organisation. As we move forward, we remain focused on sustaining our growth trajectory and enhancing shareholder value through innovative solutions and prudent management practices.”
Looking forward, Powerwell is optimally positioned to capitalise on the accelerated growth of the data centre market in Malaysia and Southeast Asia, a region experiencing exponential demand for cloud services and digital transformation.
With the Malaysian market projected to attract US$2.25 bil in investments by 2028, Powerwell’s recent acquisition of purchase orders worth RM57.61 mil for a significant data centre project in Selangor highlights its strategic role in this expanding sector.
As of March 31, the group has a robust cash balance of RM88.1 mil, up significantly from RM49.7 mil the previous year. This shall put the group in a strong position to pursue strategic growth opportunities through mergers & acquisitions (M&A) and investment to enhance its technological capabilities and expand its market footprint.
“Strong financial position will enable Powerwell to be agile and responsive in a dynamic market environment by being able to pursue strategic acquisition opportunities to accelerate our growth,” added Wong.
At the close of today’s (May 30) trading, Powerwell was down 0.5 sen or 1.06% to 46.5 sen with 25.74 million shares traded, thus valuing the company at RM270 mil. – May 30, 2024
