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PCCS swings into profitability on stronger apparel orders


PETALING JAYA: As the orders for its apparel business returned to pre-pandemic level, PCCS Group Bhd recorded a net profit of RM1.8mil in the second quarter ended Sept 30.

In comparison, it registered a net loss of RM2.35mil in the previous corresponding quarter.

The company, which has been a supplier to many brands including Puma, Adidas and H&M, also saw its revenue rising by 21.77% year-on-year (y-o-y) to RM117.97mil from RM96.88mil.

Earnings per share for the latest second quarter were 0.85 sen. No dividend was declared for the quarter.

Group managing director David Chan Wee Kiang said that PCCS’ turnaround is largely due to an increase of orders in its apparel segment in China.

“We are benefitting from the relatively early economic recovery in China,” he said in a statement yesterday.

Cumulatively, for the first six months up to Sept 30, PCCS recorded a net profit of RM3.78mil as compared to a net loss of RM732,000 a year earlier.

Revenue in the first half period rose 14.74% y-o-y to RM232.46mil.

While PCCS is predominantly an apparel maker, it has been reinventing itself to become a hire purchase and medical devices player in recent times.

Chan said the group’s hire purchase loan book size is expected to increase over time.

“There is indeed pent-up demand in the used vehicle market. Throughout Malaysia, there is a bigger inventory of used vehicles online.

“We are speeding up digital efforts as we can see the demand is there,” he said.

As of Sept 2021, PCCS has kickstarted its hire purchase business with a RM5mil loan book, and is expecting this division to start contributing in the current financial year ending March 31, 2022 (FY22).

As for the medical device business, Chan said PCCS is currently in the midst of applying for medical device registration with the authorities in Vietnam, Indonesia, Thailand, Malaysia and Singapore.

He is optimistic that they will be able to complete the registration process in at least one of these countries before the end of FY22.

“We continue to be vigilant but at the same time, are on the lookout to seize opportunities from market instabilities and seek breakthroughs for our long-term advantages,” said Chan.





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