SUSTAINABLE energy & engineering solutions specialist Kinergy Advancement Bhd (KAB) (formerly Kejuruteraan Asastera Bhd) has posted a 10-fold jump in its FY2023 net profit ended Dec 31, 2023 to RM28.66 mil from RM2.86 mil in the corresponding FY2022 period.
Underscoring the group’s successful pivot towards renewable energy (RE) and its commitment to sustainability, KAB also recorded an unprecedented revenue of RM199.41 million for FY2023, marking a 6.6% increase from the previous year.
This substantial growth was mainly due to the group’s strategic shift towards the sustainable energy segment (SES) which experienced a more than five-fold increase from the previous year within this segment.
In fact, the net profit hike was mainly driven by an impressive 862.6% growth in the group’s SES segment to RM36.10 mil which was further boosted by a substantiated gain from the completion of PT Inpola Mitra Elektrindo, a mini-hydropower plant in 3Q FY2023.
“Our record-breaking financial performance in FY2023 is a testament to KAB’s resilience and our strategic pivot towards sustainable energy solutions,” executive deputy chairman-cum-group managing director Datuk Lai Keng Onn summed up KAB’s performance.
“The remarkable performance in our SES segment coupled with our continuous growth potential underlines the significance of sustainable energy in meeting the escalating demand for cleaner energy today. It also reaffirms our expertise in delivering solutions that can shape and contribute to a greener planet and greater positive environmental impact.”
For its 4Q FY2023, KAB’s revenue soared by 35.1% to RM62.95 mil from RM46.61 mil in the previous year.
A significant highlight was the SES segment which surpassed the engineering segment to become KAB’s leading revenue generator by contributing 56.97% to the total revenue. This was mainly due to contributions from new projects and new entities acquired for the SES segment.
In line with the strong growth, KAB’s net profit spiked 314% to RM2.52 mil during the quarter under review from RM609,000 in 4Q FY2022. The significant improvement in the results was mainly due to more lucrative tariffs and contributions from new projects.
“The management’s strategy in shifting our focus from engineering works in construction and property projects to higher-margin sustainable energy solutions have yielded a bountiful harvest throughout 2023,” Lai pointed out.
“Along with our record earnings, we are also on track to meeting our operational objectives and ESG (environment, social and governance) sustainability targets.”
According to Lai, the group is cautiously optimistic about its outlook going forward, led by the SES segment. The surge of earnings in the group’s SES segment during FY2023 reflects a robust demand for green, clean and renewable energy and KAB’s successful integration of profitable projects and new entities in the SES segment.
At the close of today’s market trading, KAB was up 0.5 sen or 1.35% to 37.5 sen with 11.43 million shares traded, thus valuing the company at RM745 mil. – Feb 29, 2024
