Last updated on December 25, 2025
KUALA LUMPUR: Electrical engineering service provider HE Group Berhad (HE Group) reported a profit after tax (PAT) of RM3.2 million for the second quarter of the financial year ended 30 June 2025 (2QFY25), representing a 9.6% quarter-on-quarter (QoQ) increase from RM2.9 million in 1QFY25.
Revenue for the quarter rose 1.6% QoQ to RM32.0 million, up from RM31.5 million in 1QFY25, driven by accelerated progress of ongoing projects. The improvement in PAT was also supported by variation orders on projects nearing completion and higher other income from short-term investments.
Revenue composition and margin performance
In terms of revenue breakdown for 2QFY25:
- Other Building Systems and Works contributed RM12.7 million (39.8%),
- Power Distribution System contributed RM11.1 million (34.6%),
- Electrical Equipment Hook-up and Retrofitting contributed RM8.2 million (25.6%),
- Trading of Electrical Products contributed less than RM0.1 million (<0.1%).
On a year-on-year (YoY) basis, revenue of RM32.0 million was lower compared to RM48.9 million in 2QFY24, reflecting the completion of several projects. Nevertheless, gross profit margin improved to 20.2% from 16.2% a year earlier, supported by a favourable project mix.
PAT of RM3.2 million was recorded in 2QFY25 versus RM4.2 million in 2QFY24.
1HFY25 performance
For the six-month period (1HFY25), HE Group posted revenue of RM63.6 million, compared with RM113.7 million in 1HFY24. Despite the softer revenue, gross profit margin improved to 19.8% (1HFY24: 13.5%).
Administrative expenses were reduced to RM5.3 million, down from RM7.6 million, mainly due to the absence of one-off listing expenses incurred previously. PAT for the half year rose 6.1% YoY to RM6.1 million, compared with RM5.7 million in 1HFY24, further supported by a lower effective tax rate of 25% (1HFY24: 32%).
Outlook and growth opportunities
Managing Director, Mr. Haw Chee Seng (侯志成先生), said:
“Amid a volatile global economic environment, we remain cautiously optimistic and are taking a highly selective approach in pursuing new projects. This disciplined stance enables us to allocate manpower and financial resources where we can deliver the greatest impact, while ensuring sustainable value creation for our stakeholders.”
He added that HE Group’s strategy aligns with Malaysia’s national agenda, anchored by the 13th Malaysia Plan and the National Semiconductor Strategy, both expected to stimulate investment in the semiconductor and data centre sectors.
“In the semiconductor space, a SEMI report points to a growing global manufacturing equipment market, fuelled by rising demand for artificial intelligence (AI) and high-performance computing. While macroeconomic uncertainties persist, AI-driven chip innovation is catalysing investments in capacity expansion and advanced production capabilities,” Haw said.
He further highlighted Malaysia’s fast-growing data centre market, projected to be the fastest-growing in Asia Pacific by 2030, with 522 megawatts (MW) already completed, 1,250 MW under construction, and over 3,750 MW in the pipeline, particularly in Kuala Lumpur and Johor.
On renewable energy, Haw pointed to the Battery Energy Storage Systems (BESS) programme under the National Energy Transition Roadmap as an area where HE Group’s technical expertise in power substation and distribution projects can be applied. The recent launch of the BESS bidding exercise, offering 400 MW of capacity and 1,600 MWh of storage, underscores this opportunity.
Strong financial position
As of 30 June 2025, HE Group maintained a strong balance sheet, with cash and cash equivalents of RM58.1 million, significantly higher than total borrowings of RM1.0 million.
