ONE-stop sustainable energy and engineering solutions specialist Kinergy Advancement Bhd (KAB) (formerly Kejuruteraan Asastera Bhd) has made a promising start to its FY2024 ending Dec 31, 2024 by building on its record-breaking FY2023 performance.
The group’s net profit for its 1Q FY2024 ended March 31, 2024 spiralled 104.5% to RM4.97 mil from RM2.43 mil in the corresponding period a year ago although was little changed at RM42.04 mil (1Q FY2023: RM42.76 mil).
This robust growth underscores the effectiveness of KAB’s strategic focus on its sustainable energy segment (SES) which continues to drive the group’s financial and operational momentum.
Since KAB’s strategic pivot to SES, it has consistently surpassed its own records by achieving new heights each year.
With another strong growth in 1Q FY2024, KAB has catalysed a series of consecutive wins and sustained a trajectory of unstoppable growth by demonstrating the group’s capabilities and competencies to leading the charge in sustainable energy solutions.
The SES segment has shown exceptional performance by generating a revenue of RM19.86 mil, more than tripled over the past year. This significant increase can be attributed to the contributions from new projects and acquisitions.
In so doing, the SES alone yielded an operating profit of RM5.94 mil which is a substantial rise from RM2.68 mil in the prior year, underscoring the high profitability and promising potential of KAB’s expertise in developing renewable and sustainable energy solutions and projects.
“Our alignment with strategic directions and the seamless integration of our unique energy solutions ecosystem into our business model has been particularly notable,” KAB group managing director Datuk Lai Keng Onn pointed out.
“The SES segment leads in significant revenue contribution, showcasing the segment’s potential to support national decarbonisation efforts and enterprises to benefit from sustainable energy conservation alternatives.”
Looking ahead, KAB remains cautiously optimistic about its future prospects which are predominantly driven by the SES business segment.
“We entered into 1Q 2024 as one of the Top 10 energy sustainability provider in the Asia-Pacific (APAC) region by maintaining a consistent growth momentum,” asserted Lai who is also KAB’s executive deputy chairman.
“Our strategic focus on the energy segment with clean energy (CE), renewable energy (RE) and energy efficient (EE) solutions continues to align with expanding recognition of our technical capabilities. This prominent recognition fuels our optimism for a positive outlook in FY2024,” envisages Lai.
“We are strategically positioned to meet and exceed our clients’ evolving energy needs. Our innovative solutions stand out, offering significant growth potential and the capability to help clients transition their operational processes with sustainable and innovative energy solutions.”
At the close of today’s (May 20) mid-day trading, KAB was unchanged at 37 sen with 485,000 shares traded, thus valuing the company at RM735 mil. – May 20, 2024
