KUALA LUMPUR: Pecca Group Bhd is poised to deliver more automotive leather seat covers in the current financial year ending June 30, 2021 (FY21), with higher orders received from domestic automotive clientele.
Its chief financial officer, Foo Ken Nee, said the group had reached its pre-Movement Control Order production level of 12,000 car seat covers per month, more than 80% of full capacity of 14,000 car seat covers.
“Production orders coming from Perodua and Proton have given us a very good six-month projection and that looks positive for over the next couple of months,” he said recently.
Pecca supplies leather car seat covers to Perodua’s Myvi, Aruz and Bezza car models, and Proton’s Exora and the newly-launched X-50, which saw higher sales on strong reception by car buyers and sales tax exemptions.
Foo said the group is optimistic of getting sustained orders from customers for the rest of FY2021 as new car ownership is expected to rise amid the Covid-19 environment.
On its business plan and growth in 2021, Foo said that Pecca would be looking to expand its business in United States, Europe and Asia, to increase its global market share from 15% currently, besides having the local automotive sales on board.
“We are also looking at a couple of mergers and acquisitions (M&A) activities to enhance our existing business in the first half of 2021,” he said.
Pecca’s revenue for the automotive segment rose 112.9% to RM33.1 million in the first quarter ended Sept 30, 2020, from RM15.1 million in the preceding quarter ended June 30, 2020.
RHB Research, in a note recently, has maintained its "overweight" call on the automotive (auto) and auto parts sector as it offers an attractive risk-to-reward ratio for investors to position themselves for cyclical recovery in 2021.
It has also forecast that Proton and Perodua should gain market share in this cycle, with improvements in product quality and expansion of product offerings as key drivers.
