PEKAT GROUP BERHAD (PEKAT)

PEKAT GROUP BERHAD — More Than Just a Solar Installer

Many investors know PEKAT as a solar company. But the real story is far more compelling. PEKAT today is an energy infrastructure group spanning four distinct segments — and every one of them is growing rapidly.

Founded by Chin Soo Mau, PEKAT began as a supplier and installer of photovoltaic (PV) solar systems. From a small company on the ACE Market, it now stands firmly on Bursa Malaysia's Main Market with a market cap exceeding RM1 billion. This journey did not happen by accident — it is the result of an aggressive yet disciplined expansion strategy.

PEKAT's Four Business Segments

Key Corporate Actions

• ✅ Dec 2024: Acquired 60% of Apex Power Industry (EPE Switchgear) for RM96 million. Strategic move to enter the MV switchgear market serving TNB & private sector.
• ✅ Mar 2025: Share subdivision — improves trading liquidity.
• ✅ Jul 2025: Private placement of 66.16 million shares (10% of enlarged capital) — raised RM84 million for solar capex.
• ✅ 2025: PPA signed for solar+BESS project in Kuantan, Pahang — IPP income expected from FY27.

Shariah Status

✅ PEKAT GROUP BERHAD is SHARIAH COMPLIANT — certified by the Shariah Advisory Council of the Securities Commission Malaysia. Suitable for investors practising shariah-compliant investing.

Market & Competition

PEKAT competes in the Renewable Energy sector on Bursa Malaysia alongside peers such as SOLARVEST (0215), SAMAIDEN (0223), KINERGY (0193), SUNVIEW (0262), BM GREENTECH (0168), and NORTHERN SOLAR (0340). However, the combination of solar EPCC + MV switchgear + ELP makes PEKAT among the most diversified players in this space.

Pekat Group posted its best-ever quarterly result in 2Q FY2026 (ended 30 June 2026) — revenue jumped 38% YoY to RM175.43 million (from RM126.99 million), and net profit rose 28.8% YoY to RM14.19 million (from RM11.02 million). Quarterly EPS rose to 2.01 sen from 1.71 sen a year earlier. The Solar PV division remained the primary revenue driver, supported by steady progress on large-scale solar (LSS) EPCC projects.

*The quarterly table is compiled from our internal database (klsei3investor-financial-quarters, not yet updated for the latest quarter); the Q2 FY2026 figures are taken directly from the official Bursa Malaysia results announcement and media coverage (The Edge, BusinessToday). Individual quarterly group-level net profit sometimes differs slightly from the official half-year total due to audit/classification adjustments — for the first half (1H FY2026), the company reported net profit of RM29.6 million (up 12.6% YoY), a slower pace than the single-quarter jump because of a higher 1Q FY2025 comparison base.

The more moderate annual growth rate (1H26 +12.6%) versus the single-quarter figure (Q2 +28.8%) suggests part of the Q2 jump reflects 'lumpy' project revenue recognition — typical for EPCC/construction companies.

Pekat Group's board declared its first interim dividend for FY2026 of 1 sen per share, with a record date of 8 September 2026 and a payment date of 25 September 2026 — continuing the company's year-on-year interim dividend pattern. Based on a trailing twelve-month (TTM) EPS of approximately 7.05 sen, this implies a trailing payout ratio of around 14% — fairly low but typical for a growth company funding rapid expansion (LSS, EPE Switchgear, solar+BESS IPP projects).

At the current price of around RM1.90 (following the all-time-high breakout in early September 2026), the trailing dividend yield based on 1 sen per share is low, at roughly 0.5% — reflecting the company's focus on growth over cash returns to shareholders for now.