KUALA LUMPUR: Mega First Corp Bhd has recorded a 7.36% increase in its second quarter (Q2) ended June 30, net profit to RM87.32mil from RM81.33mil a year earlier on increased contribution from its renewable energy division.

       Revenue for the quarter rose 14.67% year-on-year (y-o-y) to RM207.84mil, it said in a filing with Bursa Malaysia yesterday.

       The company noted that the higher revenues was underpinned by higher sales contribution from across all three core divisions.

       Notably, the renewable energy division’s revenue grew 5.9% to RM114.2mil, while that of the resources division and the packaging division increased 33.3% to RM35.5mil and 38.9% to RM30million, respectively.

       For the first half of FY21, net profit for the group increased 15.81% to RM160.66mil while revenue was 17.43% higher at RM401.56mil.

       Despite the pandemic, Mega First is fairly optimistic that profitability for the remaining quarters of the year will remain resilient.

       It would continue to explore and seize new business opportunities in the solar space to further build its solar portfolio.

       However, the group cautioned that export sales for its resources segment is expected to be adversely affected by continued container shortages, high freight rates and rising petcoke fuel price.

       Meanwhile, in a separate announcement, Mega First said its joint venture company Edenor Technology Sdn Bhd has entered into a conditional sale and purchase agreement with Sime Darby Plantation Bhd and PTTGC International Pte Ltd to purchase the entire issued and paid-up capital of Emery Oleochemicals (M) Sdn Bhd and Emery Specialty Chemicals Sdn Bhd for a target equity value of RM38mil.