PA financial analysis

Financial Highlights

• Revenue and net profit: The latest quarterly revenue was RM137.7 million (approximately RM137.7 million), and net profit was RM12.4 million (approximately RM12.4 million). Despite a foreign exchange loss of RM2.3 million (approximately RM2.3 million), performance continued to grow steadily.

• Foreign exchange impact: Foreign exchange loss for the quarter compared to foreign exchange profit of RM2.7 million (approximately RM2.7 million) for the same period last year. Currently, PA also has some foreign exchange hedging.

Business unit performance

• Extrusion and Fabrication: Due to an increase in exports and local sales orders, the division's revenue increased significantly compared to the same period last year, reaching RM69.7 million (approximately RM69.7 million).

• Aluminium Billet and Tolling: The increase in revenue compared to the same period last year was mainly driven by an increase in Interco's sales profit, which rose to RM3.3 million (approximately RM3.3 million).

Strategic developments and market trends

• Supply Agreement Renewal: The supply agreement with First Solar Group was renewed until July 1, 2025, worth up to $231.9 million (approximately RM1,076 billion), providing the company with a long-term stable revenue stream.

• Capacity expansion: The company has successfully expanded production capacity to meet the demand for contract renewals. Additionally, the company plans to double production capacity by purchasing new industrial land and constructing new plants.

Prospects for the future

• Market and price fluctuations: Although current market conditions and foreign exchange fluctuations present some challenges, the company is addressing these challenges through strategic market expansion and capacity enhancement.

• Raw material prices: As aluminium prices are expected to rise, the company is likely to see the impact of increased costs in the next quarter. I believe PA will be able to pass on Costing to their customers after 2 months.

Overall, PA's performance is still in line with our expectations and continues to grow in a complex market environment. Currently, the company is also continuously increasing production capacity, and the US is beginning to consider cracking down on solar panels manufactured by China in Southeast Asia. I believe there will be more and more orders from First Solar in the future, which will also benefit PA.