KUALA LUMPUR: Kinergy Advancement Bhd (KAB) posted a net profit of RM5.39 million for the second quarter (Q2) ended June 30, 2024 (FY24), an increase of 66.08% from RM3.35 million posted in Q2 FY23.
Revenue for the quarter decreased 7.22% to RM41.82 million for Q2 FY24 from RM45.07 million registered in Q2 FY23.
For the first half (1H), net profit surged by 77.8% to RM10.5 million, up from RM5.9 million a year ago, while revenue stood at RM83.9 million, maintaining a strong strategic focus on the SES segment.
This growth is supported by a nearly fourfold increase in revenue within the sustainable energy and engineering (SES) solutions, reflecting a 255.9% year-on-year (YoY) rise.
Executive deputy chairman and group managing director Datuk Lai Keng Onn said the company is gaining greater certainties as it continues to deliver consistent financial performance bolstered by support from state government agencies and established partners.
“I am confident that our current projects will meet expectations and that we will secure additional sustainable energy development opportunities, further enhancing our earnings profile and driving even greater profit levels,“ he said.
As of June 30, 2024, KAB’s order book for its engineering and SES segments stood at approximately RM137 million and RM759 million, respectively.
Additionally, the group is bidding for tenders worth around RM160 million in engineering and a substantial RM2.89 billion in the SES segment.
“Expanding on our Q2 outlook, KAB anticipates a continued upward trajectory in its financial performance, building on the momentum established since 2023 and proven in this first half of FY24.
“The SES segment, which saw RM2.7 million profit growth in 2022, has become central to the group’s strategy, contributing over RM10 million in 2023’s core earnings – quadrupling the previous year.
“With two consecutive quarters of on-target results in FY24, KAB is making strides in securing both local and regional developments, strengthened by strong state partnerships,“ Lai said.
He said KAB expects stronger revenue and profit growth contributions in the upcoming quarters, projecting sustained momentum that could double 2023’s results.
The group remains firmly focused on meeting its FY24 targets, and its scalable business model supports a bullish outlook for exceeding past performance.
Lai said a substantial uplift in profits is expected in FY25.
“With strategic positioning for long-term value creation and ongoing expansion efforts, KAB’s future profitability appears well-supported, contingent on the successful execution of upcoming developments.
“This trajectory points toward a more robust and profitable outlook for the group,“ Lai said.
