Mega First’s 2Q profit rises to RM100.8 mil on stronger RE, packaging contributions

KUALA LUMPUR (Aug 18): Mega First Corp Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) rose 15.49% to RM100.84 million from RM87.32 million a year ago, driven by stronger contributions from its renewable energy and packaging segments. The earnings improvement was also boosted by its share of profits from joint ventures and associates.

Revenue jumped 59.67% to RM331.865 million from RM207.84 million, underpinned by higher sales from all three core divisions of renewable energy (RE), packaging and resources. Earnings per share increased to 10.67 sen from 9.22 sen, its bourse filing showed.

“Notably, the RE division registered a 9.7% top-line growth to RM151.5 million, while that of the packaging division and the resources division came in 236% higher at RM100.7 million and 40.7% higher at RM49.9 million, respectively,” said the group in a filing with the bourse.

Consequently, the RE division’s profit grew 9.6% to RM108.1 million from RM98.65 million, while the packaging division’s profit soared 565% to RM9.3 million from RM1.4 million.

The group, which builds, owns and operates RE plants, reported RM5.3 million as its share of profits in joint ventures and associates for the quarter, as opposed to none previously.

For the cumulative six months ended June 30, Mega First’s net profit rose 13.39% to RM182.18 million from RM160.66 million as revenue jumped 50.48% to RM604.25 million from RM401.56 million.

Going forward, the group expects group earnings to continue to grow in the second half of the year, underpinned by improved contributions from the RE division and its share of profit in joint ventures and associates.

“While the packaging division and the resources division are expected to face headwinds, we expect contributions from these two businesses to be satisfactory in 2H2022,” it added.

Mega First’s share price settled unchanged at RM3.52 on Thursday's close, giving the company a market value of RM3.48 billion.