KUALA LUMPUR (May 21): Mega First Corp Bhd (KL:MFCB), which is involved in renewable energy sales, limestone quarrying and packaging, said its first quarter net profit rose 35.32% to RM95.46 million from RM70.55 million a year earlier amid a significant improvement at its resource division.

The higher earnings were also attributed to a one-time boost from fire insurance compensation. The group said it recognised RM22.39 million in insurance income for the fire incident in its flexible plastic packaging factory.

Earnings per share for the quarter ended March 31, 2024 (1QFY2024) increased to 10.13 sen from 7.46 sen in 1QFY2023, according to MFCB's bourse filing.

Quarterly revenue, however, declined 9.75% year-on-year to RM313.48 million from RM347.35 million.

MFCB said its resource division, whose activities include the extraction and processing of high-purity quicklime and limestone-based products, saw its pre-tax profit soar 150% to RM14.4 million from RM5.8 million in 1QFY2023, driven by increased revenue and enhanced cost efficiency.

The division's revenue rose 14.2% to RM63.8 million during the period thanks to a higher sales volume of lime products and a gain in export currency.

The group's renewable energy division posted a marginal increase of 0.3% in quarterly pretax profit to RM88.8 million from a year earlier, as revenue rose 7.2% to RM137.7 million amid higher hydro and solar sales.

Its packaging division's pre-tax profit grew 17.6% to RM8.6 million on improved cost efficiency, but revenue dropped 0.7% to RM102.8 million.

MFCB said it expects its earnings growth momentum to continue for the remaining quarters of FY2024. The optimism stems from expected earnings improvement across all three core businesses.

The group said its solar division’s earnings are expected to grow due to the progressive installation of secured solar capacities.

For the resource division, strong demand for lime products in the region is expected to persist. As a result, the group forecasts the segment's earnings will significantly surpass the 2023 showing, based on the expected increase in sales volume of lime products, enhanced production efficiencies, and a favourable shift in the sales mix.

Shares of MFCB closed down three sen, or 0.6%, at RM4.87, valuing the group at RM4.81 billion. Year-to-date, the stock has risen 32%.