Pekat Group chief executive officer Tai Yee Chee
KUALA LUMPUR: Pekat Group Bhd
’s wholly owned subsidiary, Pekat Teknologi Sdn Bhd, has completed the RM96mil acquisition of a 60% stake in Apex Power Industry Sdn Bhd, marking its entry into the power distribution equipment business.
The solar photovoltaic (PV) and earthing and lightning protection (ELP) specialist stated that Apex Power, along with its wholly owned subsidiary EPE Switchgear Sdn Bhd, is one of Malaysia's largest manufacturers of medium voltage electrical switchgears.
The companies are also engaged in manufacturing, engineering, and project activities within the power sector. Its products are sold to foreign countries in various regions including Asia Pacific, Middle East and Europe such as Qatar, Sri Lanka, Oman, Australia and Germany.
Chief executive officer Tai Yee Chee said this strategic move positions Pekat in a well-established sector, offering steady growth and solid returns.
By adding this robust new pillar, Pekat reinforces its path to sustainable and enduring profitability, with the power distribution segment projected to contribute 25% or more to the group’s future earnings.
“Pekat will leverage on Apex Power Group’s track record in the power distribution equipment business segment and foreign markets presence to expand and complement the group’s existing businesses and market position.
“This is expected to be achieved via the integration of power distribution equipment marketed under the ‘EPE’ brand into the Pekat’s products and services, thereby allowing cross-selling of the group’s ELP products to EPE Switchgear’s customer base, as well as the inclusion of EPE Switchgear’s power distribution equipment for the group’s solar projects,” he added.
Tai said the power distribution equipment business segment is expected to increase and diversify the group’s earnings based on the aggregated profit guarantee from Apex Power of not less than RM48mil for the combined periods in the financial year ending Sept 30, 2024 to 2026.
“Therefore, we expect the new business segment to contribute 25% or more of the net profits of the group in the future,” he added.
