Pecca to expand healthcare segment
09 Jun 2021
Pecca Group Bhd plans to invest another RM5 million to expand its healthcare segment on the back of increasing market demand.
The expansion, undertaken by its wholly owned subsidiary Pecca Leather Sdn Bhd (PLSB), involves the purchase of five new face mask production lines amounting to RM3 million, while the remaining RM2 million is for building renovations.
In a statement yesterday, Pecca stated that this would also enhance its product range to include advanced face mask models.
The expansion plan is expected to be completed in the third quarter of 2021 and will be funded entirely by internally generated funds.
Pecca group MD Datuk Kelvin Teoh Hwa Cheng said as the Covid-19 pandemic situation in Malaysia is still severe, the expansion will help the group better serve the increasing demand for its high-quality face masks among the medical, corporate and retail segments.
He added that Pecca’s initial three-ply and four-ply face mask offerings, which are made to international standards, have been well received by the market.
“Through the latest expansion, we aim to introduce a greater variety of advanced face mask models such as KF94, KN95 and N95 duckbill, as well as launching more premium and fashionable face mask offerings to cater to all lifestyle needs.
“We foresee our healthcare segment to grow into a sizeable contributor to the group in the long run, as we move towards a dual-core business model driven by both the automotive leather and healthcare segments,” he said.
Currently, the group’s healthcare segment has seven face mask production lines, mainly catering to three-ply and four-ply face masks.
Since its commencement in August 2020, the segment had contributed to the increase of the group’s revenue of RM4.8 million or 12.3% in the second quarter of financial year 2021 ended Dec 31, 2020 (2Q21), and RM5.9 million or 13.8% of group revenue in 3Q21.
Pecca’s net profit for 3Q21 jumped nearly 24 times to RM8.05 million from RM341,0000 a year earlier on stronger contributions from automotive leather car seat cover sales and a growing healthcare segment.
Its quarterly revenue also surged 83.22% to RM42.5 million from RM23.2 million previously, the group said in a filing to Bursa Malaysia recently.
Meanwhile, the group said PLSB is registered with the US Food and Drug Administration and certified to comply with the European Union’s CE marking requirements, enabling Pecca to export its face masks to Asia, Europe and the US.
The group’s facility is registered with the Medical Device Authority Malaysia and certified to meet ISO 13485:2016 Quality Management System requirements for the design, development and manufacturing of personal protective equipment, including three-ply and N95 masks for surgical/medical and general use.
The group’s face masks are also manufactured in ISO Class 8 cleanroom manufacturing facility, which is certified to meet ISO 14644-1 requirements for air cleanliness and airborne particulate count.
At close yesterday, shares of Pecca ended 15 sen or 3.38% higher at RM4.59, valuing the company at RM862.92 million.
Source: The Malaysian Reserve
