KUALA LUMPUR (Nov 23): Pecca Group Bhd reported that its net profit jumped over 16 times year-on-year (y-o-y) in the first quarter ended Sept 30, 2022 (1QFY22), as its operations normalised from being restricted last year due to the Covid-19 lockdown.

Net profit rose to RM8.35 million in 1QFY22, from RM514,000 a year ago, while revenue more than doubled to RM54.86 million from RM22.79 million, said the automotive leather upholstery company in a stock exchange filing on Nov 23.

Going forward, the group is confident that the market demand for automotive seat covers will continue to grow for the rest of FY23 and that Pecca will be a beneficiary, as the reopening of economic activity gathers momentum.

“The group will continue [to] strengthen its current original equipment manufacturer (OEM) business and prepare to capture additional orders for new models with existing customers, including Perodua, Nissan, Proton, Mitsubishi, Toyota and others,” it said.

Pecca said the market for car seat covers is expected to expand significantly over the next 10 years, with the advent of a variety of lightweight, sustainable and durable materials.

“The interior design of cars will have to be aesthetically pleasing and comfortable. This expectation is driven by industry breakthroughs and the rising demand for customised automotive interior materials,” it said.

Pecca also sees good prospects in the replacement and maintenance (REM) segment abroad, specifically in the US, Australia, the Middle East, New Zealand, Singapore and Europe.

“Through overseas expansions, the group aims to gain new clients and further increase revenue contribution from the current 10% to beyond 20% in the REM segment in FY23,” it said.

Shares of Pecca closed 1.5 sen or 1.8% lower at 82 sen per share on Wednesday (Nov 23), giving it a market capitalisation of RM616.64 million.